Yamana Gold's Brio Gold To Go Public In Q3

(RTTNews) - Yamana Gold Inc. (YRI.TO, AUY) said it believes that its subsidiary, Brio Gold Inc., going public is the optimal approach to realizing considerable value and plans are progressing for a going public event in the third quarter of 2015.

Considerable progress has been made at improving the operations at producing mines in the Brio Gold portfolio and advancing the effort at C1 Santa Luz, all of which has advanced more quickly than anticipated. Yamana believes there is considerable value in the Brio Gold producing mines which will be further augmented with the efforts at C1 Santa Luz.

The company noted that it has engaged National Bank Financial Inc. and CIBC World Markets Inc. as financial advisors to assist in the process of a going public event with respect to Brio Gold.

The producing mines in the Brio Gold portfolio produced approximately 31,000 ounces of gold in the first quarter of 2015 at cash costs of approximately $825 per ounce. First quarter production is consistent with budget and these mines are on track to produce 130,000 ounces of gold at average cash costs of $730 per ounce of gold in 2015. The average realized gold price for these assets in the quarter was approximately $1,215 per ounce and exposure to the Brazilian Real remains unhedged.

Yamana reiterated 2015 production guidance of approximately 1.3 million ounces of gold and 9.6 million ounces of silver including production from Brio Gold.