Business

Yamana Gold Inc (NYSE:AUY) Makes The Announcement Regarding The $162.5 Million Sale Of Exploration Properties

The stock of Yamana Gold Inc (NYSE:AUY) closed at $2.99 gaining 4.55% in yesterday’s trading session. Yamana has made the announcement regarding its entry into a collaboration to sell a series of jointly owned exploration properties. The Canadian Malartic Corporation will be working closely the company in the sale of Hammond Reef and Kirkland properties. An official working with Yamana has disclosed that it will be structured as the sale of assets by CMC.

He went ahead to reveal that the transaction would not in any way affect the Canadian Malartic mine as well as the related assets such as East Malartic, Odyssey, East Amphi and Midway. If everything goes according to plan the transaction will have been completed by the quarter of 2018.

He asserts that the transaction is consisted with a number of the company’s well laid out strategies which are targeted at improving its financial standing in a big way. The company is on course towards delivering a set of operational improvements as well as advancing more of its development stage projects. Cerro Moro has already been fixed into the budget and by early 2018 it will already be operational. By early 2017 it is expected that Mechanical completion of the key process plant facilities at Cerro Moro will be a done deal. It was on December that the commissioning of the crushing and conveying circuit kicked ground and it goes without saying that indeed much is happening in line with giving the company and edge above rivals.

The company’s spokesperson opined,” The Company is committed to delivering production from quality mines and projects while also improving its cash balances, reducing its net debt and properly managing its balance sheet and overall financial position. This Transaction and the recent issue of the senior notes considerably advance these goals.”

The agreement provides that Yamana will be participating in any increases in net proceeds received by Agnico Eagle after it sells any of the Hammond Reef properties and Kirkland Lake during the 24-month period from the date the agreement was struck.