VANCOUVER (miningweekly.com) – Mid-sized miner Yamana Gold has completed the spin-out of its 85%-owned subsidiary Brio Gold, forming a standalone public company focused on a portfolio of noncore Yamana assets in Latin America and Canada.

While Yamana continues to be a significant shareholder of the company, Brio will be managed by a separate management and an independent board of directors and start trading on the TSX on December 28 under the ticker symbol ‘BRIO’.

"This is a transformational transaction for Brio and we are excited to be a standalone public company,” Brio president and CEO Gil Clausen said, pointing to the company’s existing sustainable gold production from three high quality mines in Brazil and a progressive growth profile within the current portfolio.

Yamana transferred 17.32-million Brio shares at a price of C$3.25 each, for total proceeds of C$56.3-million in cash, which it will use to reduce debt.

Yamana in November tried to reduce its 100% stake in Brio through a private share placement that was later abandoned owing to poor market conditions.

“Now that Brio is a standalone public company, we believe that its immediate value and value potential will be better realised. It is Yamana's intention to work with the management and board of directors of Brio Gold to help realise that value. We will continue to consider all efforts that will realise better and full value," Yamana chairperson and CEO Peter Marrone stated.

Clausen pledged to continue with Brio’s optimisation programmes at the existing mines and expect increased output year over year as the Riachos dos Machados mine ramps up production in 2017. “We expect further growth as we execute on the development plans for the recommissioning of our Santa Luz project, which has begun with the ordering of long lead time items,” he advised.