Yamana Gold sells Argentina mine, reports lower adjusted earnings

Canadian gold and silver miner Yamana Gold will sell its Gualcamayo mine, in San Juan, Argentina, to Colombia-based Latin American gold producer Mineros and has granted that company an option to acquire up to 51% of its La Pepa project in Chile.

Yamana will receive $30-million in cash upon closing the transaction and an additional $30-million upon the declaration of commercial production at the Deep Carbonates project. It will also receive a 2% capped net smelter return royalty (NSR) at Gualcamayo and a 1.5%, uncapped NSR on the Deep Carbonates project.