Yamana Gold raises $152 mln to pay off credit facility
Oct 27 (Reuters) - Yamana Gold Inc said on Tuesday it has raised $148 million in cash in three metal purchase agreements with mining finance company Sandstorm Gold Ltd , funds it will use to reduce the outstanding balance on its revolving credit facility.
Under the so-called "streaming" deals, Sandstorm will pay Toronto-based Yamana an additional $4 million in six months' time.
Yamana's shares rose 3 percent to C$3.26 on the Toronto Stock Exchange.
The agreement is the latest in a string of streaming deals by mining companies as they try repair their balance sheets after four years of weak metals prices.
In streaming transactions, mining finance companies such as Sandstorm provide miners with cash upfront in exchange for a portion of the future, usually byproduct, production from a mine.
Yamana's agreement with Sandstorm includes silver, copper and gold purchase transactions on production from several of Yamana's mines and projects in South America.
Yamana also said it was still working on ways to monetize its Brio subsidiary, which contains some of its non-core assets in Brazil. Alternatives include an initial public offering, reverse takeover, joint venture with private equity firms, or a sale or merger. (Reporting by Nicole Mordant in Vancouver; Editing by Jonathan Oatis)
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