Minera Alumbrera to Acquire Copper Gold Project in Argentina

13 March 2011 (Last Updated March 13th, 2011 18:30)

Xstrata Copper and Goldcorp have signed a letter of intent (LoI) with Yamana Gold to grant Minera Alumbrera an option to acquire Yamana's Agua Rica copper gold project in the Catamarca province of Argentina. Minera Alumbrera is a joint venture of Xstrata Copper, Goldcorp and Yamana. <

Xstrata Copper and Goldcorp have signed a letter of intent (LoI) with Yamana Gold to grant Minera Alumbrera an option to acquire Yamana's Agua Rica copper gold project in the Catamarca province of Argentina.

Minera Alumbrera is a joint venture of Xstrata Copper, Goldcorp and Yamana.

According to the LoI, Minera Alumbrera will be granted a four-year option to acquire an interest in Aqua Rica project by paying $110m, financed by Xstrata Copper and Goldcorp.

Xstrata Copper and Goldcorp will pay $150m to Yamana and an additional $50m on commissioning, if they proceed with the decision to construct the project during the four-year period.

Minera Alumbrera will manage the Agua Rica project and fund the completion of final feasibility study and all development costs.