Yamana Gold Inc. Press Release Dated April 20, 2006
FORM
6-K
UNITED
STATES
SECURITIES
AND EXCHANGE
COMMISSION
Washington,
D.C. 20549
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16
of
the Securities Exchange Act of 1934
For
the
month of April 2006
Commission
File Number 001-31880
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Yamana
Gold Inc.
(Translation
of registrant's name into English)
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150
York Street
Suite
1902
Toronto,
Ontario M5H 3S5
(Address
of principal
executive offices)
|
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
|
Form
20-F
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....[
]..... |
Form
40-F |
....[X].... |
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ____
Note:
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paper of a Form 6-K if submitted solely to provide an attached annual
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Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7): ____
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the registrant foreign private issuer must furnish and make public under the
laws of the jurisdiction in which the registrant is incorporated, domiciled
or
legally organized (the registrant’s “home country”), or under the rules of the
home country exchange on which the registrant’s securities are traded, as long
as the report or other document is not a press release, is not required to
be
and has not been distributed to the registrant’s security holders, and, if
discussing a material event, has already been the subject of a Form 6-K
submission or other Commission filing on EDGAR.
Indicate
by check mark whether by furnishing the information contained in this Form,
the
registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
|
Yes
|
....[
].... |
No
|
....[X].... |
If
"Yes"
is marked, indicate below the file number assigned to the registrant in
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Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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YAMANA
GOLD INC. |
|
|
|
| Date:
April 20, 2006 |
|
/s/ Charles
Main |
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Name:
Charles Main |
| |
Title:
CFO |
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News
Release
|
April
20, 2006
|
YAMANA
ANNOUNCES AGREEMENT TO REPAY ITS SENIOR SECURED NOTE FACILITY AND THE EARLY
EXERCISE OF 5 MILLION WARRANTS FOR GROSS PROCEEDS OF
C$21,875,000
Yamana
Gold Inc. (TSX:
YRI;
AMEX: AUY; LSE (AIM): YAU)
is
pleased to announce that it has signed an agreement with Amulet Limited
(“Amulet”), an investment fund advised by Amaranth
Advisors (Canada) ULC, with
respect to
the
early repayment of its
US$100 million senior
secured note facility. Interest is payable under the facility at 10.95% per
annum although for a two year interest deferral period interest accrues at
12.45% per annum. Interest has been accruing on the loan at the higher rate
during the deferral period since funds were first drawn. The loan matures and
would otherwise be payable in full on April 28, 2011. Under the terms of the
facility, the loan was not payable until maturity although Yamana had the option
to prepay after three years.
Together
with accrued interest and other fees, Yamana proposes to pay US$116.4 million
on
May 5, 2006, which is the date on which the repayment transaction is expected
to
close. As part of these arrangements, Amulet has also agreed to exercise the
previously issued common share purchase warrants that it currently holds for
total gross proceeds of C$21,875,000. These warrants were issued to Amulet
as
consideration relating to the initial provision of the senior secured note
facility and would otherwise be exercisable into late 2009 and early 2010.
Yamana will also issue 4,885,621 million new Yamana common share purchase
warrants for the prepayment option and in relation to the early exercise of
the
existing warrants. The new warrants will have an exercise price of C$19.08
per
share and a term of five years. Upon their exercise, Yamana would receive
additional funds of C$93.2 million.
The
transactions are conditional on regulatory approvals and on the closing of
Yamana’s previously announced financing expected to occur no later than May 2,
2006.
Commenting
on the transaction, Peter Marrone, the Company’s President and Chief Executive
Officer, said “the early repayment of our debt is something that we have been
considering for some time. We had built in the flexibility to pre-pay the debt
after three years, but outgrew it more quickly than we had originally
contemplated. With the prepayment of the facility, Yamana’s credit capacity is
strengthened and we become much more flexible with respect to financing new
opportunities. Further, the transaction is accretive to our net asset value.
The
debt served its purpose in helping us get Chapada’s construction underway in a
timely manner but Yamana is now at a different stage and we are confident that
we can achieve much more favourable borrowing terms on a go forward basis should
the need arise.”
Yamana
is
a Canadian gold producer with significant gold production, gold and copper-gold
development stage properties, exploration properties and land positions in
Brazil and Central America. Yamana expects to produce gold at intermediate
company production levels by 2006 in addition to significant copper production
by 2007. Company management plans to build on this base through the
advancement of its exploration properties and by targeting other gold
consolidation opportunities in Brazil and elsewhere in Latin
America.
This
release does not constitute an offer for sale of securities in the United
States. Securities may not be offered or sold in the United States absent U.S.
registration or an exception from U.S. registration requirements.
For
further information, contact
|
Peter
Marrone
President
& Chief Executive Officer
(416)
815-0220
E-mail:
investor@yamana.com
|
Chuck
Main
Chief
Financial Officer
(416)
815-0220
E-mail:
cmain@yamana.com
|
FORWARD-LOOKING
STATEMENTS: This
news release contains “forward-looking statements”, within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and similar
Canadian legislation, concerning the business, operations and financial
performance and condition of Yamana Gold Inc. Forward-looking statements
include, but are not limited to, statements with respect to estimated
production, synergies and financial impact of the proposed transaction; the
benefits of the proposed transaction and the development potential of Yamana’s
properties; the future price of gold and copper; the estimation of mineral
reserves and resources; the realization of mineral reserve estimates; the timing
and amount of estimated future production; costs of production; capital
expenditures; success of exploration activities; permitting time lines and
permitting, mining or processing issues; currency exchange rate fluctuations;
government regulation of mining operations; environmental risks; unanticipated
reclamation expenses; title disputes or claims; and limitations on insurance
coverage. Generally, these forward-looking statements can be identified by
the
use of forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, or variations
of such words and phrases or state that certain actions, events or results
“may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward-looking statements are based on the opinions and estimates of management
as of the date such statements are made, and they are subject to known and
unknown risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Yamana to be
materially different from those expressed or implied by such forward-looking
statements, including but not limited to risks related to: unexpected events
during construction, expansion and start-up; variations in ore grade, tonnes
mined, crushed or milled; variations in relative amounts of refractory,
non-refractory and transition ores; delay or failure to receive board or
government approvals; timing and availability of external financing on
acceptable terms; the business of Yamana not being integrated successfully
or
such integration proving more difficult, time consuming or costly than expected;
not realizing on the anticipated benefits from acquisition transactions or
not
realizing on such anticipated benefits within the expected time frame; risks
related to international operations; actual results of current exploration
activities; actual results of current reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; future prices of gold and copper; possible variations in ore reserves,
grade or recovery rates; failure of plant, equipment or processes to operate
as
anticipated; accidents, labour disputes and other risks of the mining industry;
delays in the completion of development or construction activities, as well
as
those factors discussed in or referred to in the current annual Management’s
Discussion and Analysis and current Annual Information Form of Yamana filed
with
the securities regulatory authorities in Canada and available at
www.sedar.com,
and Yamana’s Annual Report on Form 40-F, filed with the United States Securities
and Exchange Commission. Although management of Yamana has attempted to identify
important factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended. There can be
no
assurance that such statements will prove to be accurate, as actual results
and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. Yamana does not undertake to update any forward-looking statements
that are incorporated by reference herein, except in accordance with applicable
securities laws.