Goldcorp and Xstrata Queensland ("Xstrata") sign a letter of intent (LOI) with Yamana Gold (Yamana) in which Minera Alumbrera (MAA) will have an option with respect to acquisition of Yamana's Agua Rica project in Alumbrera mine in the Catamarca province, northwest Argentina.
Goldcorp, Xstrata and Yamana have joint venture operation in Alumbrera mine. Under the letter of intent, Goldcorp and Xstrata will grant exclusive four-year option to MAA to buy Yamana's interest in the Agua Rica project. for option payments made by Goldcorp and Xstrata of up to $110 million MAA will supervise the Agua Rica project and support a feasibility study during the option period.
During the four-year period, Goldcorp and Xstrata can jointly work out the option at any time for the construction of the Agua Rica project, Through an approval-to-proceed decision, Yamana will get $150 million and on commissioning, a further $150 million and the right to delayed payment related to 65% of the owed gold production from Agua Rica to a maximum of 2.3 million ounces.,
Goldcorp and Xstrata will fund all expenses related to the four-year option on a 42.86% and 57.14% respectively.
Source: http://www.goldcorp.com/