Lundin Mining has signed an agreement with Yamana Gold to buy the open-pit copper and gold Chapada mine in the Brazilian Midwest state of Goi??s for up to $1.03 billion, the miners said on Monday April 15.
Cash payments will total $800 million, with an additional $125 million in effect over five years depending on gold prices, as well as $100 million more whether the mine chooses to build a pyrite circuit to improve operations or not, the companies added.Yamana will retain 2% of net smelter return royalties on future gold output from the Suruca deposit, a gold-only ore body.The payments are subject to "customary adjustments" involved in acquisitions like this, Lundin said.Chapada has capacity to treat around...