Noranda Mining & Exploration, a unit of Noranda (TSE), has exercised its first right of opportunity concerning Yamana Resources’ (TSE) Santa Cruz project in southern Argentina.
By exercising this right, Noranda will assume all conditions of an option agreement previously negotiated between Teck (TSE) and Yamana. Now, Noranda will be able to earn a 60% interest in each discovery made on the Santa Cruz project by spending US$15 million on exploration and by delivering a bankable feasibility study.
Noranda will also increase its equity interest in Yamana to 17.4%, or just over 2 million shares.
In other news, Yamana plans to raise $11 million by issuing 4 million special warrants at $2.75 each.
A warrant will consist of one common share and one half common share purchase warrant. Each whole share purchase warrant will entitle the holder to buy one common share at $3.25 for a 2-year period.
If the financing is fully subscribed, Noranda’s equity interest in Yamana will fall to 12.9%.
Proceeds from the offering, which is expected to close July 27, will be used to fund exploration activities in six districts of Argentina.
Be the first to comment on "Noranda seizes Yamana opportunity"