Benzinga | Jun 14, 2021 07:39AM EDT

Yamana Gold To Acquire Francoeur, Arntfield And Lac Fortune Gold Properties From Globex Mining Enterprises For C$4M On Closing And Remaining C$11M Payable Over Four Years

YAMANA GOLD INC. (TSX:YRI, NYSE:AUY, LSE: AUY))))) ("Yamana" or "the Company") is pleased to announce that it has agreed to acquire from Globex Mining Enterprises Inc. the Francoeur, Arntfield and Lac Fortune gold properties adjoining the Company's Wasamac project as well as additional claims in the Beuchastel township to the east of the Wasamac project.



The acquisition of the Globex claims will significantly add to the exploration upside of the Wasamac project, and it is consistent with Yamana's strategy to expand its presence in the Abitibi-T?miscamingue Region of Quebec. Historical drilling, previous production from Francoeur and Arntfield, both former operating mines, and recent trenching and exploration work by Globex has defined a six-kilometre western continuation of the Wasa shear -- located immediately north of the prolific Cadillac Break -- with mineralization similar to that at Wasamac. Data from the Globex properties and the adjoining Wasamac project will be consolidated, and exploration drilling is expected to begin during the second half of 2021 with the objective of adding mineral resources that could extend mine life or enhance production at the proposed Wasamac mine.

The Globex properties also cover several historical gold producers located along the shear zone and, notwithstanding past production, exploration will build on a historical drill database of 1,024 drill holes by drilling several high potential targets with significant gold intercepts located outside of the historically mined areas as well as extending known mineral resources. Wasamac, Francoeur and Arntfield have recorded past production of over 823,000 ounces of gold, including 508,642 ounces at Francoeur (2.60 million tonnes at 6.1 grams per tonne ("g/t")); 252,923 ounces at Wasamac (1.89 million tonnes at 4.2 g/t); and 61,524 ounces at Arntfield (480,000 tonnes at 4.0 g/t).(1) The presence of significant mineralization and excellent exploration upside adjacent to a planned mine site underscores the potential to add significant value in the short term to the Wasamac project.

Pursuant to the terms of the Agreement, Yamana will pay an initial amount of C$4,000,000 on closing, which at the direction of Globex will be paid in shares, with the remaining payment of C$11,000,000 payable over four years in either cash or shares at the election of Globex. In addition, Globex will receive a 2% Gross Metal Royalty from Yamana, of which 0.5% may be bought back at any time by Yamana for C$1,500,000, following which the royalty would be reduced to a 1.5% Gross Metal Royalty.

The acquisition also includes certain other claims in Malartic township adjacent to the Camflo property which the Company previously acquired and has transferred to the Canadian Malartic General Partnership. These claims will be made available to the partnership also.

Closing of the Transaction is expected to take place on or about June 21, 2021, subject to usual closing conditions.