(Adds details on planned spin-off, background)
Oct 17 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
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
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
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)