Canadian Mining Journal


GOLD: Yamana raises $178M on sale of Mercedes mine, warrants

TORONTO – Yamana Gold has fattened its treasury by $178 million with the sale of its Mercedes gold-silver mine in Sonora, Mexico, and the sale of Sandstorm Gold warrants. About $156 million is earmarked for debt reduction. The company continues to hold a net smelter royalty and other marketable securities worth another $22 million.

The Mercedes mine has been sold to Premier Gold, holder of an option on the project. Yamana will received $122.5 million in cash plus shares, equity securities and a net smelter return with an additional value of about $22 million. The securities include 6 million common shares and 3 million warrants of Premier. The warrants are exercisable at $4.75 per share for a period of 24 months. The 1.0% NSR will become payable six years from the completion date of the sales after 450,000 oz of gold have been produced. Yamana was also granted a 2.0% NSR on the La Silla property in Sinaloa and La Espera property in Sonora.

Yamana raised $33.55 million through the sale of purchase warrants to buy 15 million shares of Sandstorm Gold, or $2.24 per warrant. The warrants expire on Oct. 27, 2020, and are exercisable at a price of $3.50 per share.

Yamana’s stated goal is to reduce its debt by $300 million in 2016 and 2017. Please visit

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