YAMANA GOLD INC. today announced the signing of a Memorandum of Understanding with the provincial Government of Catamarca, Argentina, represented by the provincial mining company Catamarca Mineria y Energetica Sociedad del Estado, with respect to the creation of the Catamarca Mining District.
This agreement sets the groundwork for the Company and the Government to work together to consolidate important mining projects and prospective properties in the province, currently consisting of the Agua Rica property and the Cerro Atajo prospect. The MOU also considers the future participation of mining companies like Yacimientos Mineros Agua de Dionisio, as well as permitting and significant infrastructure support on the part of the Government. This agreement is one of the first of its kind in Argentina and is indicative of government support at the national level and, as importantly, in Catamarca for the development of Agua Rica and more generally for mining and mining investments in Catamarca.
The MOU outlines the mechanics by which an association will be formed to advance exploration at the Cerro Atajo prospect, which is considered a stepping stone for further advancement in the development of the Agua Rica project. The MOU forms the basis of a working relationship between the Government through CAMYEN, other mining companies like YMAD and Yamana that is expected to result in a formal agreement by the end of the year to help advance the Cerro Atajo prospect and the Agua Rica project. The MOU also outlines a maximum ownership interest of up to 5% for CAMYEN of a combined entity, including the Agua Rica project and Cerro Atajo prospect, and minimum exploration and infrastructure spending during the three year life of the initial agreement. The MOU does not restrict Yamana's ability to deal with Agua Rica although provides a framework of cooperation that would see it advance to development more efficiently and on an expedited timeline. Presently, Yamana is considering the development of Agua Rica in conjunction with other financial and mining industry participants.
"This agreement with the Government of Catamarca through CAMYEN and which will also have the participation of other mining companies like YMAD, provides a solid and innovative base for the development of what is one of the most important and prospective copper and gold mining assets in the region," commented Hernan Vera, Vice President, Country Manager, Argentina. "We look forward to working with the Government of Catamarca and CAMYEN on this new approach to mining development, which not only considers the creation of jobs, but also takes a longer term view that places the relationship between Yamana, the Governments and the citizens of Catamarca at the forefront of the economic development of the province."
Agua Rica is a low cost, large-scale copper, gold, silver and molybdenum deposit located in the province of Catamarca, Argentina. The project is 100 per cent owned by Yamana.
The Cerro Atajo prospect lies 10 km to east of Alumbrera and 25 km west of Agua Rica, a region in which both Yamana and the Government have interests. The property is prospective for both high grade gold-copper-silver veins and large tonnage copper-gold porphyry mineralization. Cerro Atajo is centred on an intrusive complex within the same host rock as the nearby Alumbrera mine.
Source: http://www.yamana.com/