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Glencore to acquire 18.75% stake in Newmont’s Mara Project, Canadian Business Journal

TORONTO, Sept. 23, 2022 (GLOBE NEWSWIRE) — Today, Glencore International AG (“Glencore”) announced that Yamana Gold Inc. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “MARA Joint Venture”) Recognizes that it has reached an agreement (the “Agreement”) to acquire an 18.75% stake in Newmont Corporation (“Newmont”) in the MARA Project (“MARA JV”) on the terms of the Company (“MARA JV”) is doing). ” or “project”). Upon completion of the deal, Yamana will continue to be the operator of his MARA JV in which he holds his 56.25% interest in MARA, with Glencore owning the remaining 43.75%. Mr. Yamana welcomed Glencore’s increased investment in the project and said the deal is a good fit for MARA as the consolidation of ownership between the partners further underpins the project’s inherent quality and strategic options and underpins its value. I think it’s a positive step.

Under the terms of the agreement, Glencore will pay Newmont $124.9 million upon closing and $30 million in deferred payments upon commercial production, at an annual interest rate of 6%. Aggregate deferred consideration is limited to $50 million. Based on the $1.9 billion NPV (8%) determined by the 2020 PFS-B results summarized below, the implied P/NAV deal multiple is about 0.5x, which Mr. Yamana said is a minority. We believe it is consistent with comparable prior transactions for shareholder sales. Interest in projects in similar development stages.

Glencore previously ran Minera Alumbrella, where Yamana was a partner. Minera Alumbrella is now merged with Yamana’s 100% owned Minera Agua Arica and is part of the MARA project. Glencore has worked with Yamana on the establishment of the MARA JV, the integration of the Aguarica deposit and the Minera Alumbrella processing plant, related infrastructure and other assets, and the development of the project since then.

Yamana said that as MARA advances permitting, engineering, social licensing and fieldwork towards its goal of finalizing a feasibility study and environmental and social impact assessment, it will continue to work with Glencore and local stakeholders. I look forward to continuing the work. value of the project.

About MARA

The MARA Project is a high quality, low risk brownfield project located in the province of Catamarca, Argentina. On a 100% basis, MARA has proven and probable mineral reserves of 11.8 billion pounds of copper and 7.4 million ounces of gold in 1.1 billion tonnes of ore.(1)Project highlights based on PFS(B) results completed in 2020 include:

  • Long initial mine life of 28 years
  • 42 million tonnes of ore supply annually
  • 556 million pounds of copper equivalent annual production for the first decade(2)
  • cash cost(3) $1.32 per pound and AISC(3) $1.44 per pound for the first 10 years of production
  • $2.78 billion initial capital
  • Assuming metal prices of $3.00 per pound of copper, $1,300 per ounce of gold, $18.00 per ounce of silver, $11.00 per pound of molybdenum, and using an 8% discount rate, the NPV is $1.96 billion, The IRR is 21.2%.
  • Project economics, assuming $3.50 per pound of copper and $1,600 per ounce of gold, would increase the NPV to over $3 billion and the IRR to about 30%.

Additional project information can be found on the MARA project web page.

qualified person

Scientific and technical information contained in this news release has been reviewed and approved by Sébastien Bernier, P. Geo and Senior Director, Reserves and Resources. Sébastien Bernier is an employee of Yamana Gold Inc. and a “Qualified Person” as defined by the Canadian Securities Administrator’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Yamana

Yamana Gold Inc. is a Canada-based precious metals company with significant gold and silver production, development stage properties, exploration properties and land locations throughout the Americas, including Canada, Brazil, Chile and Argentina. I am a producer. Yamana targets expansion and optimization efforts at existing operating mines, development of new mines, enhancement of exploration profile and, at times, other integration opportunities primarily focused on the Americas. , intends to continue building on this foundation.

Please contact us for more information.

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endnote

(1) Summary of gold and copper mineral reserves attributed to MARA. Mineral reserves are estimated using variable metallurgical recovery. Average metallurgical recoveries of 86% Cu, 35% Au, 43% Ag and 44% Mo were considered. Open pit mineral reserves are reported with an average variable cut-off value of $8.42/t based on metal price assumptions of $3.00/lb Cu, $1,250/oz Au, $18/oz Ag, and $11/lb Mo. LOM average open pit $1.72/t moving costs, processing and G&A costs are $6.70 per tonne of mine processed. The mineral reserve depletion rate is 1.7 and the overall dip angle varies from 39° to 45° depending on the geotechnical sector.

Money proven mineral reserves probable mineral reserves Total – Proven and Probable
tons School year contains tons School year contains tons School year contains
(Chiyo) (grams/tonnes) Oz. (Chiyo) (Chiyo) (grams/tonnes) Oz. (Chiyo) (Chiyo) (grams/tonnes) Oz. (Chiyo)
Mara (56.25%) 330,300 0.25 2,655 291,150 0.16 1,498 621,450 0.21 4,152
copper proven mineral reserves probable mineral reserves Total – Proven and Probable
tons School year contains tons School year contains tons School year contains
(Chiyo) (% ) pound (mm) (Chiyo) (%) pound (mm) (Chiyo) (%) pound (mm)
Mara (56.25%) 330,300 0.57 4,151 291,150 0.39 2,503 621,450 0.49 6,654

(2) Copper equivalent metals include copper with gold, molybdenum and silver converted to copper equivalent metals based on the following metal price assumptions: ounce of silver

(3) Non-GAAP financial performance measures. Please refer to Section 11 of the Company’s management discussion and analysis for the quarter ended 30 June 2022 (dated 28 July 2022) filed on SEDAR (www.sedar.com, EDGAR) . The most directly comparable GAAP measure is cost of sales.

Cautionary Note Regarding Forward-Looking Statements: Under applicable Canadian securities laws, this news release contains “forward-looking statements” and “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. “Forward-Looking Information” has been included or incorporated by reference. Forward-looking information includes, but is not limited to, information regarding our strategies, plans, expectations and beliefs relating to the MARA Project. This includes progress in production, capital, operating costs, and feasibility studies. Forward-looking statements are characterized by words such as “plans,” “expects,” “budget,” “goals,” “projects,” “intends,” “believes,” “expects,” “estimates,” and similar terms. You can Or, a statement that a particular event or condition “may occur” or “will occur.” Forward-looking statements are based on management’s opinions, assumptions and estimates that were believed to be reasonable at the time the statements were made and are inherently subject to various risks and uncertainties and actual events or outcomes. subject to other known and unknown factors that may cause differ materially from those anticipated in the forward-looking statements. These factors include: production and exploration at our projects achieved, our expectations related to development and expansion plans, the impact of proposed optimizations at our projects, national and local government laws, taxation, changes in management or regulation, and/or changes in the management of laws, policies and practices, and the impact of general business and economic conditions, on the timing of cash flows and the value of assets and liabilities based on anticipated future conditions; availability of global liquidity and credit; fluctuating metal prices (gold, silver, copper, zinc, etc.); exchange rates (Canadian dollar, Brazilian real, Chilean peso, Argentine peso vs. US dollar, etc.); Ore grade or recovery, changes in our hedging programs, changes in accounting policies, mineral resource and mine change reserves, risks related to asset disposals, risks related to metal purchase agreements, risks related to acquisitions, plans changes in project parameters as the industry continues to be refined; changes in project development, construction, production and commissioning timeframes; risks associated with infectious diseases; COVID-19; increases in fuel, steel, power, labor and other consumables prices, failure of plants, equipment or processes to operate as expected, unexpected changes in mine life, concentrate sales final prices, unanticipated results of future research, seasonality and unforeseen weather changes, the cost and timing of development of new deposits, the success of exploration activities, permitting schedules, government regulation, and the risk of government expropriation or nationalization; risks associated with mining operations, reliance on local advisors, and c consultants in foreign jurisdictions, environmental risks, unforeseen development costs, risks associated with operating joint ventures, title disputes or claims, insurance coverage limitations; , the timing and anticipated outcomes of pending and unresolved lawsuits and labor disputes, risk jurisdictions related to the exercise of legal rights abroad, and to securities regulators in all provinces of Canada, www.sedar Risk Factors Discussed or Referenced in Our Annual Information Form available at www.sec.com and in our Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission. Although we have attempted to identify important factors that could cause our actual actions, events or results to differ materially from those set forth in the forward-looking statements, we do not anticipate actions, events or results. , presumed or unintended causative factors may exist. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Except as required by applicable law, we undertake no obligation to update any forward-looking statements if circumstances or management’s estimates, assumptions or opinions change. Readers are cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of helping investors understand what we believe to be its true value proposition and is not suitable for any other purpose. There is a possibility.


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Glencore to acquire 18.75% stake in Newmont’s Mara Project, Canadian Business Journal

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