Xstrata Copper has entered into a definitive agreement with Goldcorp and Yamana Gold, by which Minera Alumbrera will have the option to acquire Yamana’s 100% interest in the Agua Rica project in Argentina.

Minera Alumbrera is a joint venture (JV) between Xstrata Copper, Goldcorp and Yamana that currently operates the Alumbrera mine.

According to the agreement, Minera Alumbrera holds an exclusive four-year option to acquire Yamana’s interest in the Agua Rica project for cumulative payments of $110m made by Goldcorp and Xstrata Copper.

Minera Alumbrera will manage the project and fund a feasibility study and all development costs of the project during the option period.

Minera Alumbrera will work in collaboration with stakeholders and Yacimientos Mineros de Agua de Dionisio to assess the optimum potential development of Agua Rica and complete the environmental impact studies.