Yamana Gold Completes Acquisition of Extorre Gold Mines; Sees 2015 Start-up of Cerro Moro Mine
Yamana Gold Inc. (YRI.TO) said it has completed the acquisition of Extorre Gold Mines Ltd. after receiving final court approval on Tuesday.
With the acquisition, Yamana adds several exploration and development stage precious metals projects, the most advanced of which is Cerro Moro, a high grade, gold silver deposit in the province of Santa Cruz, Argentina.
"We are pleased to finalize the acquisition of Extorre and through that acquisition, the ownership of its Cerro Moro project. Integration, exploration and development plans are already underway. As an initial step, we plan to spend $5 million at Cerro Morro over the next four months to upgrade and increase mineral resources, with a focus on certainty in the definition of grade and size of the ore body," commented Peter Marrone, Chairman and CEO.
"We will be evaluating a plan for a 2015 start-up that targets a production level at or above 200,000 ounces of gold equivalent(1) per year. This would represent an increase in production of more than 10% and additional growth in cash flow and earnings. By the end of the year, we expect to have a definitive plan for exploration and development to achieve our target. We believe this asset will deliver significant value to Yamana's shareholders."
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