TORONTO, July 19, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”) today announced the early results of its previously announced cash tender offer for its 4.95% Senior Notes due 2024 and 4.625% Senior Notes due 2027 (collectively, the “Public Notes”). According to information received from D.F. King & Co., Inc., the Information Agent for the tender offer, as of 5:00 p.m., New York City time, on July 18, 2019, the following Public Notes have been tendered to the tender offer:

Title of Notes CUSIP Number Principal Amount
Tendered Acceptance
Priority Level
4.95% Senior Notes due 2024 98462YAB6
98462YAA8
C98883AA6 347,891,000 2
4.625% Senior Notes due 2027 98462YAD2 114,529,000 3
462,420,000

The tender offer is made pursuant to Yamana’s Offer to Purchase, dated July 5, 2019 (the “Offer to Purchase”), in which Yamana has also offered to purchase several series of its other Senior Notes, which are referred to in the Offer to Purchase as the Private Notes. As set out in the Offer to Purchase, if $415,000,000 aggregate principal amount or more of the Private Notes are tendered in the tender offer, Yamana will not accept any tenders of Public Notes for purchase. In addition, the principal amount of each series of Public Notes that is purchased in the tender offer will be determined in accordance with the acceptance priority level (in numerical priority order) specified above.

The $462,420,000 of Public Notes tendered under this Offer to Purchase is well in excess of the $415,000,000 available to the Public Note Holders. This well positions the Company toward achieving its goal of meaningfully retiring outstanding debt and thereby significantly improving its financial position in order to pursue organic growth and value creating opportunities.

For all details regarding the tender offer for the Public Notes and the Private Notes, investors should refer to the Offer to Purchase. Requests for documents and questions regarding the tendering of Public Notes may be directed to D.F. King & Co., Inc. either by email at yamana@dfking.com, or by phone (212) 269-5550 (for banks and brokers only) or (866) 521-4487 (for all others toll free). Questions regarding the tendering of Private Notes may be directed to AST Trust Company (Canada) by phone (416) 682-3860 or 1-800-387-0825 (toll free). Yamana expressly reserves the right, in its sole discretion, subject to applicable law, to terminate or amend the tender offer for the Public Notes.

This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders with respect to, the Notes. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Tender Offers are being made solely pursuant to the Offer to Purchase and the related Letter of Transmittal made available to Holders of the Notes. Neither Yamana or any other person or entity referred to herein or in the Offer to Purchase is making any recommendation as to whether or not holders should tender or refrain from tendering all or any portion of their Public Notes or Private Notes. Holders are urged to evaluate carefully all information in the Offer to Purchase and the related Letter of Transmittal, consult their own investment and tax advisers and make their own decisions whether to tender Public Notes or Private Notes, and, if so, the principal amount thereof.

AND
Yamana Gold Announces a Positive Pre-Feasibility Study With an Impressive and Increased NPV of $1.9 Billion and an Increased After-Tax IRR of 19.7% for the Long Life Integrated Agua Rica Copper-Gold Project



07/19/2019

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TORONTO, July 19, 2019 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY) (“Yamana” or “the Company”) is pleased to announce the results of the pre-feasibility study (“PFS”) on the Agua Rica project in the Catamarca Province of Argentina.

Pre-Feasibility Study Highlights
•Proven and probable copper mineral reserves increased from year-end 2018 by 21% to 11.8 billion pounds and gold mineral reserves increased by 12% to 7.4 million ounces
•Initial long mine life of 28 years
•Annual production for the first 10 full years increased to 533 million pounds of copper equivalent(1) production
•Cash costs decreased to $1.29 per pound and all-in sustaining costs (“AISC”)(2) decreased to $1.52 per pound for the first 10 years of production
•Net present value (“NPV”) increased to $1.935 billion with an increased after-tax internal rate of return (“IRR”) of 19.7%(3)
•Full feasibility study expected to be completed by 2020

The positive PFS results follow the March 7, 2019, announcement of a definitive integration plan between Yamana, Glencore International AG (“Glencore”), and Newmont Goldcorp Corporation (“Newmont Goldcorp”) (collectively the “Parties”), which contemplates the development and operation of the Agua Rica project using the infrastructure and facilities of Minera Alumbrera Ltd. (“Alumbrera”), realizing important synergies, lowering initial capital required, and reducing the environmental footprint.

(All amounts are expressed in United States Dollars unless otherwise indicated.)
1.Copper equivalent metal includes copper with gold, molybdenum, and silver converted to copper-equivalent metal based on the following metal price assumptions: $6,614 per tonne of copper, $1,250 per ounce for gold, $24,250 per tonne for molybdenum, and $18.00 per ounce for silver.
2.Refers to a non-GAAP financial measure. Please see the discussion included at the end of this press release under the heading “Non-GAAP Financial Measures”.
3.Assuming metal prices of $3.00 per pound of copper, $1,300 per ounce of gold price, $18.00 per ounce of silver, $11.00 per pound of molybdenum and using an 8% discount rate.

The integration plan generates significant synergies and lowers execution risk by bringing together the extensive mineral resource of Agua Rica with the existing infrastructure of Alumbrera to create a unique, high quality, and low risk brownfield project that the Parties believe will bring significant value to shareholders and local communities and stakeholders. This unique and innovative project will serve to position Catamarca as a focal point for development in northwestern Argentina.

The Parties are pleased to have collectively advanced the integration of Agua Rica and Alumbrera and now to have advanced the PFS under the oversight and with the support of a technical committee comprised of their respective representatives. The Parties also recognize and appreciate the collaboration of the national government of Argentina and provincial government of Catamarca, along with several state-owned entities, which led to the integration plan thereby supporting advancing the project with the PFS.

Based on mineral reserves updated as at June 30, 2019, the PFS estimates a mine life of 28 years with average annual production over the first 10 years of approximately 533 million pounds of copper equivalent(1) including 107,000 ounces of gold and contributions of molybdenum and silver. Costs are expected to fall well within the lower half of the cost curve, with average cash costs over the first 10 years estimated at $1.29 per pound and competitive AISC(2) of $1.52 per pound for the same period.

The initial capital cost estimate of $2.4 billion realizes significant synergies from using the infrastructure and facilities of Alumbrera. The project is expected to generate strong economic returns with an after-tax NPV at an 8% discount rate (a discount rate that is consistent with other investments in country and the brown fields nature of the project) of $1.935 billion, and an after-tax IRR of 19.7%, assuming a copper price of $3.00 per pound (“base case”). Opportunities to further improve the economics will be evaluated in a value-seeking study scheduled for 2019 and the full feasibility study expected by 2020.

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