Been a good day owning Yamana YRI, apparently several other mining companies are paying Yamana to set up a mine on some property they have been exploring on. In the end Yamana will still have a small share. Here are the details,
The terms of the agreement provide for Yamana to receive from Xstrata and Goldcorp a combination of payments summarized as follows:
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- Initial payments totaling $110 million, payable as follows:
- $10 million payable within seven days of this announcement
- $20 million payable upon execution of formal transaction
documents ("closing")
- $20 million payable 12 months from closing
- $30 million payable 24 months from closing
- $30 million payable 36 months from closing
- Further payments totaling $200 million, which include:
- $150 million payable upon approval to proceed with construction
- $50 million payable upon achieving commercial production
>>
In addition to the above consideration in this transaction, the Company would also receive a deferred consideration revenue stream. The deferred consideration to be received by Yamana would be based on a formula (subject to certain adjustments) as follows:
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65% of payable gold produced X (spot gold price - ($450 10% X
(spot gold price - $1000))), up to a maximum of 2.3 million ounces
paid to Yamana
Ok I can add up all the millions on the first part totals 310 million. The defered consideration revenue stream. haha What does that come out to? I was good at math in school and have the technology to buy a quarter of land but what does that equation come out to? Does one need more information? Hey this may be related to farming, right, haha, are transactions like this what we have to look forward to?
The terms of the agreement provide for Yamana to receive from Xstrata and Goldcorp a combination of payments summarized as follows:
<<
- Initial payments totaling $110 million, payable as follows:
- $10 million payable within seven days of this announcement
- $20 million payable upon execution of formal transaction
documents ("closing")
- $20 million payable 12 months from closing
- $30 million payable 24 months from closing
- $30 million payable 36 months from closing
- Further payments totaling $200 million, which include:
- $150 million payable upon approval to proceed with construction
- $50 million payable upon achieving commercial production
>>
In addition to the above consideration in this transaction, the Company would also receive a deferred consideration revenue stream. The deferred consideration to be received by Yamana would be based on a formula (subject to certain adjustments) as follows:
<<
65% of payable gold produced X (spot gold price - ($450 10% X
(spot gold price - $1000))), up to a maximum of 2.3 million ounces
paid to Yamana
Ok I can add up all the millions on the first part totals 310 million. The defered consideration revenue stream. haha What does that come out to? I was good at math in school and have the technology to buy a quarter of land but what does that equation come out to? Does one need more information? Hey this may be related to farming, right, haha, are transactions like this what we have to look forward to?
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