Yamana Gold to sell 100% interest in Gaulcamayo mine
Yamana Gold announced it has entered into a definitive purchase agreement to sell 100% of its interest in the Gualcamayo mine located in San Juan Province, Argentina to Mineros. Separately, the company has agreed to grant Mineros an option to acquire up to a 51% interest in the La Pepa project, located in the Maricunga gold belt, Chile, over an earn in period of four years, and then the remaining 49% interest pursuant to a call option. The total value of the consideration for Gualcamayo resulting from the Sale Transaction is in line with recent market valuations for comparable assets. These valuations are reflective of the current commodity price environment, which is approximately $100 per ounce of gold lower than as of December 31, 2017. This total value is estimated at approximately $85.0 million and, as such, the carrying value of Gualcamayo has been reduced to this amount. The Sale Transaction is subject to customary regulatory and third party approvals and other customary closing conditions and is expected to close in the fourth quarter of 2018.