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.