Yamana’s Takeover of Extorre Moves Forward

Mineweb reported that Extorre Gold Mines Ltd. (TSX:XG) shareholders voted 99.5 percent in favor of Yamana Gold Inc.’s (TSX:YRI) $400 million takeover proposal, which will give Yamana control of Extorre’s Cerro Moro gold-silver project.

As quoted in the market news:

For Yamana, Cerro Moro is not an asset to sit on and dither about bringing into production. Yamana Chairman and CEO Peter Marrone said to expect a startup in 2015, with production somewhere around 200,000 ounces gold equivalent, building on existing production it estimates will be between 1.2 million to 1.3 million ounces gold in 2012, company-wide.

Yamana’s rationale for the deal from a financial point of view was simple. “It is a relatively small transaction in that it represents only three percent of Yamana’s market capitalization yet it could ultimately deliver more than 10 percent of our total gold equivalent production,” Marrone said in a prepared statement back in July. “It is rare to find such a small transaction that could contribute meaningfully to increases in net asset value, production and cash flow.”

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