On February 28, 2006, Yamana Gold Inc., a Canadian gold producer, acquired RNC Gold Inc., a gold mining company focused on projects in Latin America. Yamana acquired all of the outstanding shares of RNC in exchange for approximately 4.9 million common shares of Yamana (based on an exchange ratio of 0.12 of a Yamana common share for each RNC common share exchanged). Prior to the completion of this acquisition, Yamana advanced a senior secured loan of approximately US$18.9 million to RNC to facilitate RNC's purchase of a 75 per cent interest in the San Andrés gold mine in Honduras. Upon the closing of the acquisition, Yamana exercised RNC's option to acquire the remaining 25 per cent interest in the San Andrés gold mine for consideration equal to US$4 million, which was paid through the issuance of 872,093 Yamana common shares. The purchase price for the acquisition totalled approximately US$49 million, comprised of $28 million in common shares of Yamana, US$18.9 million in the form of the senior secured loan noted above, and US$2.1 million of other transaction costs and adjustments.
The acquisition of RNC adds two producing mines and other advanced development property along with a portfolio of exploration targets in Central America to Yamana's current portfolio of producing, development and exploration projects.
Yamana was represented by Cassels Brock & Blackwell LLP with a team led by Mark Bennett that included Andrea FitzGerald and Peter McCague (securities), Renate Herbst (financial services), Erik Goldsilver (business), Chris Norton (tax) and Robert Cohen (advocacy). RNC was represented by a team led by Lonnie Kirsh of Kutkevicius Kirsh, LLP and Darren Brown (corporate/commercial) of Sheppard Shalinsky Brown.
The acquisition of RNC adds two producing mines and other advanced development property along with a portfolio of exploration targets in Central America to Yamana's current portfolio of producing, development and exploration projects.
Yamana was represented by Cassels Brock & Blackwell LLP with a team led by Mark Bennett that included Andrea FitzGerald and Peter McCague (securities), Renate Herbst (financial services), Erik Goldsilver (business), Chris Norton (tax) and Robert Cohen (advocacy). RNC was represented by a team led by Lonnie Kirsh of Kutkevicius Kirsh, LLP and Darren Brown (corporate/commercial) of Sheppard Shalinsky Brown.
