4/15, 2:13 PM (Source: TeleTrader)
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Lundin Mining to pay $1B for Yamana Gold's mine

Canada-based multinational company Lundin Mining Corp. will pay over $1 billion for Yamana Gold Inc.'s Chapada mine in Brazil, out of which $800 million will be in cash, the companies announced on Monday.

The mine, which produces copper and gold, began operating in 2007.

"While Chapada has been a valued asset for Yamana, the Sale Transaction delivers a significant gain, delivers a high after-tax return and financially repositions the Company with a significant and immediate improvement to overall financial flexibility, thereby allowing the Company to pursue near-term value maximizing portfolio opportunities and also to increase shareholder returns, initially by way of a 100% increase in the annual dividend," stated Peter Marrone, Executive Chairman of Yamana Gold.

Shares of Yamana traded on the New York Stock Exchange jumped over 3% in premarket trading following the announcement. At 8:00 am ET, they slowed to a 0.78% rise.

Breaking the News / NI