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Yamana Gold Announces Agreement to Sell its Chapada Mine for Total Consideration of Over US$1.0 Billion

Published: 04/15/2019

Team: Mark T. Bennett, Cathy L. Mercer, Jamie Litchen, Alexander Pizale, David Singh

On April 15, 2019, Yamana Gold Inc. announced that it entered into a definitive agreement to sell its wholly-owned Chapada mine to Lundin Mining Corporation for total consideration of over US$1.0 billion. The Chapada mine, located in the State of Goiás, Brazil, is a copper mine with additional gold production that was developed by Yamana and began production in 2007. Under the terms of the agreement with Lundin, Yamana will receive cash consideration of US$800 million in cash at closing, additional consideration of up to US$125 million based on the price of gold over a five-year period, a US$100 million payment contingent on the development of a pyrite roaster at the project by Lundin, and a 2% net smelter return royalty on gold production from the adjacent Suruca gold project. 

Cassels Brock acted for Yamana with a team comprised of Mark Bennett, Cathy Mercer, Jamie Litchen, Alexander Pizale and David Singh (Securities, Mining and M&A).