On October 27, 2015, Yamana announced that it had entered into three metal purchase agreements with Sandstorm for which Sandstorm has paid Yamana total advanced payments of $148 million and has issued Yamana 15 million common share purchase warrants with a strike price of $3.50 and a term of five years. Sandstorm will also pay Yamana an additional advanced payment of $4 million in six months. The metal purchase agreements include a silver purchase transaction related to production from Cerro Moro, Minera Florida and Chapada, a copper purchase transaction related to production from Chapada, and a gold purchase transaction related to production from Agua Rica. 100 per cent of the advanced payment will be used by Yamana to reduce the balance outstanding on its revolving credit facility.
The transaction is one of various alternatives that Yamana has been evaluating and advancing to help achieve its stated goal of reducing the balance owning on its revolving credit facility to nil.
Yamana was represented in-house by Sofia Tsakos (Senior Vice President, General Counsel and Corporate Secretary) and Charles Whitburn (Director, Legal Counsel) and by Cassels Brock & Blackwell LLP with a team comprising Mark Bennett, Alex Pizale (securities and mining), Matt Peters (tax), and Jennifer Wasylyk (financial services).
Borden Ladner Gervais LLP represented Sandstorm with a team led by Erik Goldsilver (mining, corporate) and including Andrew Powers, Linda Tu, Michael Waters (mining, corporate) and Shane Pearlman (financial services).