Yamana Gold Inc (NYSE:AUY) has entered into a deal to offer certain jointly owned exploration assets of the Canadian Malartic Corporation including the Hammond Reef and Kirkland Lake properties. The deal is established as a sale of assets by CMC, in which company holds a 50% indirect stake.
As per the deal, Agnico Eagle Mines Limited will buy all of company’s indirect 50% stake in the Canadian exploration properties of the Canadian Malartic Corporation in consideration of proceeds to Yamana Gold of $162.5 million. The deal will not impact the Canadian Malartic mine and linked properties including East Malartic, Odyssey, East Amphi and Midway. This deal is planned to close in Q1 2018.
Yamana Gold reported that the deal is consisted with its stated goal to enhance its financial position. Other current and recent measures which have or will further develop this initiative comprise are mentioned here. The first important one is planned cash flow increase which is projected as the firm continues to offer operational improvements and develop its advancement stage assignments, most particularly Cerro Moro which continues to be on budget and on plan for startup in 2018.
Mechanical closure of the major process plant facilities at Cerro Moro is on plan to be concluded by the close of 2017 and conveying circuit and commissioning of the crushing started in December. Mine advancement is now being organized by Operations having already moved from Technical Services. With Cerro Moro leading to production in 2018 and with its estimated low cost profile, the firm projects considerable increases to cash flow and EBITDA for 2018 and beyond.
Next, the recently reported offering of senior notes offers further financial flexibility in the medium term. Yamana Gold project to use this improved flexibility to replace and advance mine cash flows and to target added optimization and other prospects.