Yamana to reduce Brio Gold stake to 21% through private placement
TORONTO (miningweekly.com) – Canadian miner Yamana Gold will reduce its stake in subsidiary Brio Gold to about 21%, as the parent moves to further divest from the Brazil-focused spinout.
TSX- and NYSE-listed Yamana and Brio have started a private placement of Brio shares. It would comprise a primary offering by Brio and a secondary offering by Yamana. The implied valuation of Brio, based on the offering, was about $369.3-million.
Yamana advised that the majority of the proceeds from the primary offering would fully fund the near-term business plan for Brio, including the recommissioning of the C1 Santa Luz mine, which was expected to produce about 100 000 oz/y of gold when in full production.
Yamana expected to raise about $208.5-million before commissions and placement fees, which it planned to apply for general corporate purposes.
The company had, in December 2014, spun out some of its noncore Brazilian assets, including Fazenda Brasileiro, Pilar and C1 Santa Luz, as well as some related exploration concessions, into Brio Gold.
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