Tuesday, 6th December 2005 (2532 views)

Yamana Gold is to acquire mining company RNC Gold in a move that could increase its 2006 gold production to 400,000 ounces.

It is estimated that the additional properties will result in an overall annual gold production of 650,000 ounces by 2008.

Upon completion of the transactions, Yamana Gold will gain RNC Gold's two producing mines La Libertad and San Andres, in Nicaragua and Honduras respectively.

It will also own the Cerro Quema project in Panama and the area surrounding the Bonanza mine in Nicaragua with options to purchase it.

"The transaction strengthens Yamana's position as a fast-growing, intermediate-size gold producer. With this transaction, Yamana has made a material step towards accomplishing its strategic goal of producing 750,000 ounces by 2008," commented Peter Marrone, president and chief executive officer of Yamana.

Yamana is a Canadian gold producer with properties in Brazil, while RNC Gold focuses on Central American mines.

 

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