Yamana Gold Announces Closing of Sale of Equinox Gold Shares and Warrants
April 15 2020 - 7:54AM
YAMANA GOLD INC. (TSX: YRI; NYSE: AUY) (“Yamana” or “the Company”)
is pleased to announce it has closed its previously announced sale
(the “Sale Transaction”) of 12,000,000 common shares of Equinox
Gold Corp. (“Equinox”) and 6,000,000 warrants of Yamana to
purchase common shares of Equinox to qualified purchasers for gross
proceeds to Yamana of C$120,000,000 (see press release dated April
13, 2020). The shares and warrants were sold through Stifel GMP and
Cormark Securities Inc.
Each warrant entitles the holder thereof to
acquire one additional common share of Equinox owned by Yamana at
an exercise price of C$13.50 for a term of 9 months expiring on
January 15, 2021. In the event all warrants are exercised, an
additional C$81,000,000 will be paid to Yamana, for total gross
proceeds to Yamana of C$201,000,000.
With the initial proceeds of C$120,000,000
(US$86,000,000) from the closing of the Equinox share sale, the
Company’s preliminary cash and net debt, on a pro forma basis, as
at the end of the first quarter, were over US$400,000,000 and
approximately US$790,000,000, respectively, thereby providing the
Company with a strong financial position complementing its
operational strength.
The securities issued and to be issued under the
Sale Transaction have not been, and will not be, registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws, and accordingly,
may not be offered or sold within the United States except in
compliance with the registration requirements of the U.S.
Securities Act and applicable state securities requirements or
pursuant to exemptions therefrom. This news release does not
constitute an offer to sell or a solicitation of an offer to buy
any of the securities in the United States.
About Yamana
Yamana Gold Inc. is a Canadian-based precious
metals producer with significant gold and silver production,
development stage properties, exploration properties, and land
positions throughout the Americas, including Canada, Brazil, Chile
and Argentina. Yamana plans to continue to build on this base
through expansion and optimization initiatives at existing
operating mines, development of new mines, the advancement of its
exploration properties and, at times, by targeting other
consolidation opportunities with a primary focus in the
Americas.
FOR FURTHER INFORMATION, PLEASE
CONTACT:Investor Relations416-815-0220
1-888-809-0925 Email: investor@yamana.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: This news release contains “forward-looking statements”
and “forward-looking information” under applicable Canadian
securities legislation and within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
information includes Yamana’s plans to continue to build on its
asset base through expansion and optimization initiatives at
existing operating mines, development of new mines, the advancement
of its exploration properties and, at times, by targeting other
consolidation opportunities with a primary focus in the Americas.
Forward-looking statements are characterized by words such as
“plan", “expect”, “budget”, “target”, “project”, “intend”,
“believe”, “anticipate”, “estimate” and other similar words, or
statements that certain events or conditions “may” or “will” occur.
Forward-looking statements are based on the opinions, assumptions
and estimates of management considered reasonable at the date the
statements are made, and are inherently subject to a variety of
risks and uncertainties and other known and unknown factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. These factors
include the risk factors discussed in the Company's Annual
Information Form filed with the securities regulatory authorities
in all provinces of Canada and available at www.sedar.com, and the
Company’s Annual Report on Form 40-F filed with the United States
Securities and Exchange Commission. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. The Company undertakes no
obligation to update forward-looking statements if circumstances or
management’s estimates, assumptions or opinions should change,
except as required by applicable law. The reader is cautioned not
to place undue reliance on forward-looking statements. The
forward-looking information contained herein is presented for the
purpose of advising investors of the completion of the Sale
Transaction and may not be appropriate for other
purposes.
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