South African mining company Gold Fields has announced the purchase of Canadian company Yamana Gold in an operation that has reached 6,700 million dollars. In Argentina Yamana Gold has two projects: Minera Agua Rica-Alumbrera (MARA) and Cerro Moro, while Golf Fields does not operate in the local market.

With this fusion is created one of the top four gold producing companies in the world based in Johannesburg and operations in South Africa, Ghana, Australia, Canada and South America.

Under this agreement, Gold Fields will purchase all outstanding common stock of Yamana at a rate of 0.6 Gold Fields shares for each Yamana share. Upon completion of the transaction, the shareholders of Gold Fields and Yamana will hold approximately 61% and 39% of the new world producer respectively.

The transaction was unanimously approved by the board of directors of both mining companies and is expected to close in the next second half of 2022 after the fulfillment of the conditions set out in the contract.

Business in Argentina

In Argentina, Yamana manages the Mara project, in the pre-development phase for the production of copper, gold and silver in the province of Catamarca; and has participation in the gold project in production of Cerro Moro, in Santa Cruz.

“Plans for Mara and Cerro Moro will continue as planned,” a Canadian firm source said when asked about the deal’s impact on the local market.

“With the development of the projects in the portfolio in Chile, Canada and Argentina, the new company will have a significant financial capacity and synergy that will allow to be able to carry on Marain addition to continuing the expansion and production plans in existing mines such as Cerro Moro”, The source completed.

Commenting on the purchase, Chris Griffith, CEO of Gold Fields, noted that “each company brings with them a unique set of geological skills and knowledge, enabling the new global manufacturer to upgrade their resources more efficiently in the long term. than was previously possible. who could do it as separate companies.

Meanwhile, Peter Marrone, CEO of Yamana Gold, added that the transaction “reflects the inherent fair value of our assets while offering the opportunity to benefit from the creation of a new global gold producer“.

For Gold Fields, Yamana is a natural strategic choice “Its diversified, high-quality portfolio of long-term assets located in rule-based jurisdictions favorable to mining across the Americas (including its five production mines and its portfolio of development projects and exploration properties) and with a shared focus on health and safety and environmental, social and governance performance, “the note reads.

NEITHER