(Adds details on planned spin-off, background)
Oct 17 (Reuters) - Canadian miner Yamana Gold said on Monday it plans to spin off its Brio Gold subsidiary, which owns non-core gold mining properties in Brazil, as a standalone public company to its shareholders.
Yamana, a mid-sized gold producer, last November tried to reduce its 100 percent stake in Brio through a private share placement but later suspended that plan, citing poor market conditions.
In the latest move, Yamana shareholders will receive purchase rights in Brio as a dividend in-kind, which they can use to buy shares in the unit. The exercise price will depend on market demand.
Yamana would retain an unspecified stake in Brio.
The Toronto-based producer said a spin-off would allow it to “better focus on its portfolio of six, soon to be seven, producing mines in top mining jurisdictions and on its organic growth pipeline”.
Yamana, which has operations in Canada and South America, will use proceeds from the exercise of the purchase rights and any direct sales of Brio shares to reduce debt. Brio would not get any of the proceeds. (Reporting by Nicole Mordant in Vancouver; Editing by Bernard Orr and Alan Crosby)