Yamana Gold completes sale of royalty portfolio for $65 million
(Kitco News) - Yamana Gold Inc. (TSX: YRI; NYSE: AUY) has completed the previously announced sale its royalty portfolio to Nomad Royalty Co. Ltd. (formerly Guerrero Ventures Inc.) for $65 million, the company announced late Wednesday.
Yamana said it received $10 million in cash plus $45 million in common shares of Nomad at a price of C$0.90 per share. In addition, Yamana has the right to receive an additional $10 million through a deferred cash payment that can be paid in cash or shares of Nomad. The deferred payment has other conditions, such as 3% interest.
Yamana said the deal gives it immediate cash value for non-core assets and medium-term value growth through shares in a newly created, growth-oriented company. Nomad is expected to begin trading on the Toronto Stock Exchange “on or about” Friday under the symbol NSR.
“The closing of the sale transaction underpins another step in the company’s strategy to optimize its portfolio, continuing the strengthening of its financial flexibility and creating value from its strategic assets,” Yamana said in a prepared statement. “The sale transaction provides Yamana with a meaningful stake in a new precious-metals royalty company that has a strong and diversified asset base, significant potential upside through project development, mineral resource expansions and mine life extensions, as well as like-minded corporate objectives and a growth mandate in a strong precious-metals price environment.”