This deal benefits Yamana

Article Excerpt

YAMANA GOLD $4.34 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815- 0220; www. yamana.com; Shares outstanding: 1.0 billion; Market cap: $3.9 billion; Dividend yield: 0.6%) operates six gold mines, in Canada, Mexico, Brazil, Chile and Argentina. It also holds 53.6% of Brio Gold, $2.46, (symbol BRIO on Toronto); that firm owns three of its own mines in Brazil. Vancouver-based Leagold Mining Corp. (symbol LMC on Toronto) has offered to buy Brio Gold. Investors would receive 0.922 of an LMC share for every Brio Gold share they hold. Based on the current price for Leagold Mining, the bid is equal to $2.43 per Brio Gold share. Brio Gold was trading for $1.77 before the offer. Leagold’s bid has the support of Yamana, which would get 58 million LMC shares. That’s equal to a 22% stake in an enlarged Leagold. Yamana Gold is a buy. buy…