Gold is over 1800.00 believed to be heading higher TORONTO, July 05, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or the “Company”) today announced it has completed the sale of its wholly-owned Chapada mine to Lundin Mining Corporation (TSX:LUN) (“Lundin”) for total consideration of over $1.0 billion.
Yamana has received the initial upfront cash consideration of $800 million on closing. In addition to the initial cash payment, consideration also includes a $100 million cash payment contingent on the development of a pyrite roaster at Chapada by Lundin, a two per cent net smelter return (“NSR”) royalty on the Suruca gold project in the Chapada complex, and a right to receive up to $125 million in additional cash consideration (“the Gold Price Instrument”) based on the price of gold over the five-year period from the date of closing as follows:
- $10 million per year for each year over the next five years where the gold price averages over $1,350 per ounce, up to a maximum cash payment of $50 million.
- An additional $10 million per year for each year over the next five years where the gold price averages over $1,400 per ounce, up to a maximum cash payment of $50 million.
- An additional $5 million per year for each year over the next five years where the gold price averages over $1,450 per ounce, up to a maximum cash payment of $25 million.
(All amounts are expressed in United States Dollars unless otherwise indicated.)
LUN was more than willing to give up to 125 million for the next 5 yrs total from july 2019 to 2024 for $100 plus ounce we are at plus $450 per ounce and climbing this is gold alone & this company is a copper mine, I have owned this share for a least 5+ years so very happy green, not sold 1 share not planing too, gold is going crazy but copper will king
Just my 2 cents GLTOL