Yamana Sells LatAm Assets

Canadian mining exploration company Yamana Gold has agreed to sell its producing mines in Honduras and Brazil to Aura Minerals for $200m, of which $160m is in cash and $40m in Aura common shares at CAD0.40 each. The sale of the Honduras mine, San Andres, is expected to close July 23 and the Brazil mines, Sao Francisco and Sao Vicente, are expected to close by the end of the year. Yamana will retain a contingent cashflow-based royalty on the mines that will provide up to $40m in additional payments to Yamana, which it says it expects to receive beginning as early as 2012. National Bank Financial is acting as the financial advisor to Yamana and Cassels Brock & Blackwell is legal advisor. Aura Minerals’ financial advisor is Genuity Capital Markets and its legal counsel is DuMoulin Black.