TORONTO, ONTARIO–(Marketwired – July 28, 2016) – YAMANA GOLD INC. (TSX:YRI)(NYSE:AUY) (“Yamana” or “the Company”) is pleased to announce that it has entered into a definitive Share Purchase Agreement (the “Agreement”) to sell 100% of its interest in the Mercedes mine in Sonora, Mexico to Premier Gold Mines Limited (“Premier”) (herein referred to as the “Transaction”). Pursuant to the Agreement, Yamana will receive consideration in the form of cash and equity securities, the value of which was $140 million at the time of negotiations. Total cash and equity securities consideration is summarized as follows:
- Cash consideration of $122.5 million;
- Approximately 6 million Premier common shares; and
- Approximately 3 million Premier common share purchase warrants (exercisable at C$4.75 per common share for 24 months from the closing of the Transaction).
The Company expects to use the proceeds from the Transaction to reduce the Company’s net debt position.