Yamana Gold (NYSE:AUY) +4.4% pre-market after announcing an agreement with Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Goldcorp (NYSE:GG) to develop and operate its Agua Rica gold and copper mine in Argentina using infrastructure and facilities of the three companies’ existing venture in the country.
The companies say the integration of the Agua Rica project with the jointly held Alumbrera mine has merit because of the proximity of the assets and the opportunity to increase financial benefits and reduce both the project’s complexity and environmental footprint.
According to the deal terms, Yamana would own 56.25% of the combined Agua Rica and Alumbrera assets, with Glencore owning 25% and Goldcorp holding 18.75%; currently Yamana owns 100% of Agua Rica and 12.5% of Alumbrera, while Glencore owns half of Alumbrera while Goldcorp owns 37.5%.
Preliminary studies show potential for Agua Rica’s mine life in excess of 25 years with average copper equiv. production of 236K mt/year for the first 10 years of operation.
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