Yamana Advances Agua Rica Strategy

TORONTO -Yamana Gold Inc. reported an arrangement, subject to formal documentation, with Xstrata Queensland Limited and Goldcorp Inc. that would facilitate the ultimate integration of Agua Rica into Minera Alumbrera. Agua Rica is a 100% Yamana owned, development stage project in the province of Catamarca, Argentina and is located approximately 35 kilometres from the currently operating Alumbrera mine. Subject to Xstrata and Goldcorp exercising their option to have Alumbrera acquire Agua Rica, and following the integration of the projects, Xstrata, Goldcorp and Yamana would own interests in the combined project of 50%, 37.5% and 12.5% respectively, consistent with their current interests in Alumbrera.
"We are pleased to come to an agreement with Xstrata and Goldcorp with respect to Agua Rica," said Peter Marrone, Chairman and CEO. "After reviewing a number of strategic alternatives for Agua Rica, it was clear that this transaction provides the best opportunity for development of Agua Rica and the greatest value potential to all parties. We are pleased with the value we will receive for Agua Rica in addition to maintaining exposure to a significant portion of the gold at the project.
The company's address is 150 York Street, Suite 1102, Toronto, ON M5H 3S5.