Yamana Gold Inc. agreed to sell certain non-cashflow generating exploration properties, including the Kirkland Lake and Hammond Reef gold properties in Ontario, Canada, to Agnico Eagle Mines Ltd. for US$162.5 million in cash.
The company's 50%-controlled unit Canadian Malartic Corp. will sell Yamana's 50% interest in the Canadian exploration assets.
Yamana plans to use the sale proceeds for operational improvements and advancing its development stage projects, mainly Cerro Moro in Argentina, which is scheduled to start in early 2018.
The company will receive additional proceeds if Agnico Eagle sells the properties at a higher price within two years.
The deal excludes the Canadian Malartic mine and related assets, including Odyssey, East Malartic, Midway and East Amphi.
The transaction is scheduled to close in the first quarter of 2018.