Xstrata Copper, Goldcorp and Yamana Finalize Four-year Option Agreement on Agua Rica

TORONTO, Sept. 1, 2011 /CNW/ --
(All amounts in United States dollars unless otherwise specified)

TORONTO, Sept. 1, 2011 /CNW/ - Xstrata Copper, Goldcorp Inc. ('Goldcorp') and Yamana Gold Inc. ('Yamana') announced today that they have reached a definitive agreement providing
Minera Alumbrera Limited Sucursal Argentina ('Minera Alumbrera') the
exclusive option to acquire Yamana's 100% interest in the Agua Rica
project. Agua Rica is a feasibility stage project in the province of
Catamarca, Argentina, located approximately 35 kilometres from the
currently operating Alumbrera mine.

Minera Alumbrera is a joint venture operation between Xstrata Copper
(manager and 50% owner), Goldcorp (37.5% owner) and Yamana (12.5%
owner) that currently operates the Alumbrera mine. Under the terms of
the agreement, Minera Alumbrera holds an exclusive four-year option to
acquire Yamana's interest in the Agua Rica project for cumulative
payments made by Goldcorp and Xstrata Copper of $110 million. During
the option period Minera Alumbrera will manage the Agua Rica project
and fund a feasibility study and all development costs. The respective
ownership interests in Minera Alumbrera would remain unchanged and
apply to the Agua Rica project.

The formal documentation includes the Feasibility Services Agreement
under which Minera Alumbrera took control of Agua Rica as of August 31,
2011. In addition, the shareholder and management agreements for Minera
Alumbrera were amended to facilitate the potential integration of the
combined projects. As required, Goldcorp and Xstrata Copper have made a
payment of $20 million to Yamana on execution of the definitive
agreements, in addition to the $10 million paid previously.

Minera Alumbrera can elect to exercise the option at any time during the
four-year period.  Upon approval to proceed, Yamana would receive $150
million and a further $50 million on commencement of commercial
production in addition to the remaining option payments of $80 million,
all as previously disclosed. Yamana would also retain the right to a
deferred payment related to 65% of the payable gold production from
Agua Rica to a maximum of 2.3 million ounces.

An independent feasibility study has now commenced under the direction
of Xstrata Copper, as the manager of Minera Alumbrera. Fluor Canada
Ltd. ('Fluor') has been retained to conduct the study which is expected
to be complete in early 2013.  At the same time, Minera Alumbrera will
work with stakeholders, including Yacimientos Mineros de Agua de
Dionisio to assess the optimum potential development of Agua Rica and
complete Environmental Impact Studies.  Subject to a positive
feasibility study, the option being exercised, and all necessary
corporate and government approvals, a construction decision is expected
to follow with construction potentially starting in 2013.

Notes to editors

About Minera Alumbrera

Minera Alumbrera is a joint venture operation between Xstrata Copper
(manager and 50% owner), Goldcorp (37.5% owner) and Yamana (12.5%
owner).  Minera Alumbrera has the right to mine the Bajo de la
Alumbrera copper-gold deposit, located in Catamarca province in
northwest Argentina, by agreement with Yacimientos Mineros de Agua de
Dionisio (YMAD) which has the title to the deposit. YMAD is formed by
the government of Catamarca province and the National Tucuman
University and is entitled to 20% of Minera Alumbrera's net proceeds.
In 2010, Minera Alumbrera produced 140,000 tonnes of copper in
concentrate and 405,000 ounces of gold in concentrate and gold dore.

About Agua Rica

Agua Rica is a large-scale copper and gold deposit located approximately
35 kilometres from Alumbrera mine in north-west Argentina's Catamarca
province.  The optimum production profile will be confirmed through the
feasibility study but Minera Alumbrera's analysis to date indicate that
Agua Rica has the potential to produce approximately 250,000 tonnes of
copper and 140,000 ounces of gold per annum for the first five years
and an annual average of 150,000 tonnes of copper and 130,000 ounces of
gold, together with associated molybdenum production, over a 26-year
mine life.

About Xstrata Copper

Xstrata Copper is the fourth largest global copper producer with
attributable mined production in 2010 of 913,500 tonnes of copper in
cathodes and concentrates. The company is also one of the world's
largest producers of smelter and refined copper, including from third
party materials.

Headquartered in Brisbane, Xstrata Copper is one of the commodity
business units within the major global diversified mining group Xstrata
plc. Its mining and metallurgical operations and development projects
span eight countries: Argentina, Australia, Canada, Chile, Peru, the
Philippines, Papua New Guinea and the USA. Its operations and projects
are administered through a regional divisional management structure,
which ensures that critical decisions are taken close to the related
businesses. It also has a recycling business (Xstrata Recycling) with
plants in the United States and offices in Canada and Asia

About Goldcorp

Goldcorp is one of the world's fastest growing senior gold producers. 
Its low-cost gold production is located in safe jurisdictions in the
Americas and remains 100% unhedged.

About Yamana

Yamana is a Canadian-based gold producer with significant gold
production, gold development stage properties, exploration properties,
and land positions in Brazil, Argentina, Chile, Mexico and Colombia.
Yamana plans to continue to build on this base through existing
operating mine expansions, throughput increases, development of new
mines, advancement of its exploration properties and by targeting other
gold consolidation opportunities with a primary focus in the Americas.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This news release contains 'forward-looking statements' within the
meaning of the applicable securities legislation.  Except for
statements of fact relating to Yamana, Goldcorp and Xstrata,
information contained herein constitutes forward-looking statements,
including any information as to the potential exercise of the option,
activities during the option period and each company's strategy or
plans.  Forward-looking statements are characterized by words such as
'expect', 'target', and other similar words, or statements that certain
events or conditions 'will' occur.  Forward-looking statements are
based on the opinions, assumptions and estimates of management
considered reasonable at the date the statements are made, and are
inherently subject to a variety of risks and uncertainties and other
known and unknown factors that could cause actual events or results to
differ materially from those projected in the forward-looking
statements.  These factors include the each company's expectations in
connection with the project.  Although each company has attempted to
identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or
results not to be anticipated, estimated or intended.  There can be no
assurance that forward-looking statements will prove to be accurate, as
future events could differ materially from those anticipated in such
statements.  Each company undertakes no obligation to update
forward-looking statements if circumstances or management's estimates,
assumptions or opinions should change, except as required by applicable
law.  The reader is cautioned not to place undue reliance on
forward-looking statements.

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