Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, March 11, 201

Article Excerpt

YAMANA GOLD, $12.36, symbol YRI on Toronto, has entered into an agreement with Goldcorp Inc. (Toronto symbol G) and Switzerland-based Xstrata plc. Under the deal, Yamana will sell its 100%-owned Agua Rica copper/gold property in Argentina to mining firm Minera Alumbrera. Agua Rica is about 35 kilometres from the producing Alumbrera mine. This mine is owned by Minera Alumbrera, which is currently owned 50% by Xstrata, 37.5% by Goldcorp and 12.5% by Yamana. In exchange for Agua Rica, Yamana (which will still own 12.5% of the project through Minera Alumbrera) will get payments totalling $110 million over three years, plus a further $150 million when construction begins on a mine, and an additional $50 million when the mine goes into production. Yamana will also get a revenue stream equal to 65% of the gold produced as a by-product of the mainly copper deposit, to a maximum of 2.3 million ounces at spot prices minus $450 U.S. an ounce. The agreement is good for…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.