OREANDA-NEWS. November 25, 2015. YAMANA GOLD INC.
(TSX:YRI)(NYSE:AUY) ("Yamana" or the "Company") hereby announces that its wholly-owned subsidiary Brio Gold Inc.
("Brio Gold") has commenced a private placement of Brio Gold common shares, consisting of a primary offering by Brio Gold and a secondary offering by Yamana. The implied initial post-money valuation of Brio Gold based on the private placement is approximately \\$369.3 million
The primary offering as currently planned will fully fund the near-term business plan for Brio Gold with the majority of proceeds expected to be applied towards the re-commissioning plan for C1
Santa Luz. C1
Santa Luz is expected to contribute approximately 100,000 ounces of gold per year when in full production and represents the potential for further value creation for Yamana's residual interest going forward.
The private placement also provides for the sale of a substantial portion of Yamana's interest in Brio Gold through a secondary offering of its shares from which Yamana expects to receive aggregate proceeds before commissions and placement fees of approximately \\$208.5 million. Pro forma the financing, Yamana will hold approximately 20.9% of the issued and outstanding Brio Gold common shares, or 19.9% on a fully diluted basis with an initial implied value for this residual interest of approximately \\$73.5 million.
Proceeds from the secondary offering of shares of Brio Gold will be used by Yamana for general corporate purposes.
This news release is not an offer of Brio Gold common shares (or any other securities) in the United States or in any other jurisdiction. The Brio Gold common shares referred to in this news release have not been and will not be registered under the U.S. Securities Act or the securities laws of any jurisdiction and will only be offered or sold in transactions that are exempt from the registration requirements of the U.S. Securities Act. The Brio Gold common shares referred to in this news release will not be qualified by a prospectus for distribution to the public in Canada under applicable Canadian securities laws, will only be offered on a private placement basis in reliance from exemptions under Canadian securities laws and, if issued, will be subject to transfer and selling restrictions in Canada.