“The combination with Brio represents a unique opportunity to acquire a portfolio of producing assets with a meaningful growth profile,” said Neil Woodyer, CEO, Leagold. “The all-stock offer results in Brio shareholders owning approximately 42% of the combined company.”

The combined operations are expected to produce 450,000 ounces (oz) in 2018, with the potential for growth to more than 700,000 oz in 2020 at all-in sustaining costs in the mid-$800s, he said.

In addition, this reduces overall business risk by having four operating mines in two jurisdictions. He said, “We regard both Mexico and Brazil as jurisdictions with considerable future potential for Leagold.”

Leagold presented an offer to Yamana that it could not overlook, explained Peter Marrone, chairman and CEO, Yamana, which owns 53.6% of Brio’s shares.

Leagold’s growth strategy in Latin America began with the acquisition of the Los Filos mine in Mexico in April from Goldcorp. The company now hopes to build Leagold into a leading, intermediate gold producer in Latin America.