YAMANA GOLD Provides Update On Initiatives Relating To Non-core Brazilian Assets

(RTTNews) - YAMANA GOLD INC. (YRI.TO, AUY) announced the advancement of strategic initiatives relating to non-core Brazilian assets including Fazenda Brasileiro, C1 Santa Luz and Pilar, and its 100% owned Agua Rica project. The company is advanced in the process of structuring its intercorporate holdings to form a new subsidiary company, Brio Gold Inc. that will hold Fazenda Brasileiro, Pilar and C1 Santa Luz as well as some related exploration concessions.

Starting in 2015, the new Yamana subsidiary and the operational management, optimization and improvement of its assets will be led by Gil Clausen as Chief Executive Officer. Clausen is an experienced mining executive with over 30 years of experience in both executive and operational roles within the base and precious metals industry. He most recently held the position of President and Chief Executive Officer of Augusta Resource Corporation, which was acquired earlier in 2014. Joseph Longpre will join as Chief Financial Officer.

The company said it has received a positive independent technical review relating to previous studies on Agua Rica and on the potential development options for Agua Rica. This update provides a basis for the company to continue to pursue multiple options to unlock value from the asset including potential joint ventures with other financial and/or industry participants, the sale of a majority interest in the project or an outright sale. YAMANA GOLD said discussions with third parties in this regard are soon to commence and the company has retained Credit Suisse Securities (Canada), Inc. to assist in the process.

Agua Rica is a low cost, large scale porphyry copper, molybdenum, gold and silver deposit located in the province of Catamarca, Argentina with proven and probable mineral reserves of approximately 10 billion pounds of copper and 6.5 million ounces of gold.