On July 5, 2019, Yamana Gold Inc. (“Yamana”) completed the sale of its wholly-owned Chapada mine to Lundin Mining Corporation (“Lundin”) for total consideration of more than US$1 billion. The Chapada mine, located in the State of Goiás, Brazil, is a copper mine with additional gold production that was developed by Yamana and began production in 2007.
Pursuant to the sale transaction, Yamana received cash consideration of US$800 million at closing and is entitled to receive additional consideration of up to US$125 million based on the price of gold over a five-year period, a US$100-million payment contingent on the development of a pyrite roaster at the project by Lundin Mining, and a 2% net smelter return royalty on gold production from the Suruca gold project.
Yamana was represented internally by Sofia Tsakos, Senior Vice President, General Counsel and Corporate Secretary, Kathleen Caughey, Assistant General Counsel, and Andrea Moens, Senior Legal Counsel.
Cassels Brock & Blackwell LLP acted as Canadian counsel to Yamana with a team comprised of Mark Bennett, Cathy Mercer, Jamie Litchen, Alexander Pizale and David Singh (Securities, Mining and M&A) and Jennifer Wasylyk and David Budd (Financial Services).
Pinheiro Neto Advogados acted as Brazilian counsel to Yamana with a team that included Carlos Vilhena and Adriano Drummond Trindade (Corporate).
Heussen acted as Dutch counsel to Yamana with a team that included Tim Schreuders, Martijn Koot, Juliette Schueler and Thijs Butter (Corporate).
Lundin was represented internally by Andrew Hastings, Senior Vice President and General Counsel. Stikeman Elliott LLP acted as Canadian counsel to Lundin with a team that included Jay Kellerman, Ivan Grbesic, Kim Le, Christian Vieira (Corporate), Susan Hutton and Michael Kilby (Competition) and Dean Kraus (Tax).
Veirano Advogados acted as Brazilian counsel to Lundin with a team that included Andre Carvalho, Pedro Garcia, Cintia Andrade, Carolina Bastos, Pedro Katz and Maria Cecilia Vieira (Corporate).
Loyens & Loeff acted as Dutch counsel to Lundin with a team that included Charlotte Rozendaal, Roel Fluit, Carola van den Bruinhorst, Amit Havenaar and Stijn Werdmolder (Corporate).