Yamana Gold raising Can$260 million

Yamana Gold (NYSE:AUY) announced this afternoon that is raising $260 million on a bought-deal basis.

Lead underwriters are Canaccord Genuity Corp. and National Bank Financial Markets.

Proceeds will be used for debt reduction and “general corporate purposes.”

Press release is below:

Yamana Announces C$260.2 Million Equity Financing
TORONTO, ONTARIO–(Marketwired – Jan. 12, 2015) –

YAMANA GOLD INC. (TSX:YRI)(NYSE:AUY) (“Yamana” or the “Company”) today announced it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by Canaccord Genuity Corp. and National Bank Financial Markets (the “Lead Underwriters”) under which the Lead Underwriters have agreed to buy on a bought deal basis by way of a short form prospectus, 49,100,000 common shares of Yamana (the “Shares”) at a price of C$5.30 per Share for gross proceeds of C$260,230,000 (the “Offering”). In addition, the Company has agreed to grant to the Underwriters an option (the “Over-Allotment Option”) to purchase from the Company up to an additional 7,365,000 Shares at a price of C$5.30 per Share, on the same terms and conditions as the Offering, exercisable any time, in whole or in part, until the date that is 30 days after and including the closing date of the Offering. If the Over-Allotment Option is exercised in full, the total gross proceeds to Yamana will be C$299,264,500.

The net proceeds of the Offering will be used for general corporate purposes and to reduce the Company’s debt position and to further strengthen the balance sheet. This prudent action will put the Company in a stronger position in any commodity price environment and improve the Company’s ability to deliver future growth.

The Offering is expected to close on or about February 3, 2015 and is subject to the Company receiving all necessary regulatory approvals.

The Shares will be offered by way of a short-form prospectus in all of the provinces of Canada.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.

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