View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 26, 2018

Yamana Gold to sell Gualcamayo mine in Argentina to Mineros

Canadian miner Yamana Gold has signed an agreement to sell all of its interest in the Gualcamayo gold mine located the in San Juan Province of Argentina to Colombia-based precious metals exploration firm Mineros for a consideration of around $85m.

Canadian miner Yamana Gold has signed an agreement to sell all of its interest in the Gualcamayo gold mine located in the San Juan Province of Argentina to Colombia-based precious metals exploration firm Mineros for a consideration of around $85m.

Free Report
img

Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

Under the terms of the agreement, Mineros will provide $30m at the time of the closure of the sale, followed by a further $30m once commercial-scale production commences at the Deep Carbonates project.

Deep Carbonates is an undeveloped mineral resource situated below the existing oxide gold mineralisation at the Gualcamayo project.

Yamana will also retain a 2% net smelter return royalty (NSR) on metal production from the Gualcamayo project after the initial 396,000oz. The NSR is capped at $50m and does not include the Deep Carbonates project. Additionally, the company will have a 1.5%, uncapped NSR on the Deep Carbonates project.

Yamana has agreed to the deal as part of its strategy to focus on projects that showcase greater potential for production, costs, longer life and capital requirements.

The completion of the sale, which is subject to customary regulatory and third party approvals, is anticipated to occur in the fourth quarter of this year.

In a separate transaction, Yamana agreed an option deal over La Pepa project, located in the Maricunga gold belt, Chile.

Pursuant to the deal, Mineros will have an option to buy up to a 51% interest in the La Pepa project. The company will have an earn-in period of four years, following which it can acquire the remaining 49% stake under a call option.

As per the terms of the option agreement, Mineros is required to invest $5m on the La Pepa project over a period of two years in return for an initial 20% interest.

“Mineros will provide $30m at the time of the closure of the sale, followed by a further $30m.”

The company can gain a further 31% interest by incurring an additional $15m over the subsequent two-year period towards completion of a National Instrument No. 43-101 compliant technical report for the project and making a $5m payment to Yamana.

Once the company’s stake in the project reaches 51%, it can exercise the call option to buy the remaining 49% interest.

The parties will sign the option agreement upon completion of the Gualcamayo transaction.

Related Companies

Free Report
img

Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Mining Technology