Sumitomo Corporation’s $48 Million Acquisition of 5 % interest in Minera Yanacocha S.R.L.


Rodrigo, Elías & Medrano and Rubio Leguía Normand advised on the deal

Sumitomo Corporation (Sumitomo) finalized the acquisition of 5% Interest in Minera Yanacocha SRL.

Sumitomo paid $48 million for the ownership interest in Yanacocha.

As a result of the transaction, Newmont and Buenaventura’s ownership interests in Yanacocha will revert to 51.35 percent and 43.65 percent, respectively, the proportion held prior to the repurchase of the IFC’s ownership stake in December. The transaction is structured as a new share issuance to Sumitomo, with the payment going towards Yanacocha’s cash balances.

In October, Newmont’s Board of Directors approved full funding for Quecher Main which is expected to extend Yanacocha’s oxide mine life to 2027. Quecher Main also will serve as a bridge to future growth options, including development of Yanacocha’s extensive sulfide deposits. If approved, the sulfides project could extend Yanacocha’s operational life through 2039.

Sumitomo also is currently partnered with Buenaventura at Freeport’s Cerro Verde copper mine in southern Peru.

ewmont is a leading gold and copper producer. The Company’s operations are primarily in the United States, Australia, Ghana, Peru and Suriname. Newmont is the only gold producer listed in the S&P 500 Index and was named the mining industry leader by the Dow Jones Sustainability World Index in 2015, 2016 and 2017. The Company is an industry leader in value creation, supported by its leading technical, environmental, social and safety performance. Newmont was founded in 1921 and has been publicly traded since 1925.

Yanacocha is South America’s largest gold mine, located in the province and department of Cajamarca, approximately 800 kilometers northeast of Lima, Peru. The operation is a joint venture between Newmont Mining Corporation (51.35%), Minas Buenaventura (43.65%) and Sumitomo Corporation (5%). Yanacocha has been in production since 1993, directly and indirectly supporting thousands of well-paying jobs and contributing nearly $3 billion in taxes and royalties. In addition, Yanacocha has invested more than $640 million in economic, social and infrastructure development in the Cajamarca region for water facilities, education, health care, agricultural support, and small business development and training.

Rodrigo, Elías & Medrano Abogados advised Sumitomo with Jean Paul Chabaneix (Picture), Claudio Ferrero, Nicolás Cornejo, Francisco Barrios, Mariana Delgado, Juan Carlos Del Busto, Mayra Jiménez, Daniel Francisco, César Carlin, Fiorella Romero, Tomás Denegri and Diego Price.

Rubio Leguía Normand advised Newmont Second Corporation and Minera Yanacocha S.R.L. with Emil Ruppert, Marilú Pedraza, Kelly Pérez, Xennia Forno and Rodrigo Martel.

Involved fees earner: Emil Ruppert – Rubio Leguía Normand; Marilú Pedraza – Rubio Leguía Normand; Kelly Pérez – Rubio Leguía Normand; Xennia Forno – Rubio Leguía Normand; Rodrigo Martel – Rubio Leguía Normand; Jean Paul Chabaneix – Rodrigo, Elías & Medrano Abogados; Claudio Ferrero – Rodrigo, Elías & Medrano Abogados; Nicolas Cornejo – Rodrigo, Elías & Medrano Abogados; Francisco Barrios – Rodrigo, Elías & Medrano Abogados; Juan Carlos Del Busto – Rodrigo, Elías & Medrano Abogados; Fiorella Romero – Rodrigo, Elías & Medrano Abogados; Mariana Delgado – Rodrigo, Elías & Medrano Abogados; Tomás Denegri – Rodrigo, Elías & Medrano Abogados; Mayra Jiménez – Rodrigo, Elías & Medrano Abogados; César Carlin – Rodrigo, Elías & Medrano Abogados; Daniel Francisco – Rodrigo, Elías & Medrano Abogados;

Law Firms: Rubio Leguía Normand; Rodrigo, Elías & Medrano Abogados;

Clients: Sumitomo Corp.; Newmont Mining Corporation ; Minera Yanacocha S.R.L.;

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Author: Ambrogio Visconti.