TORONTO (miningweekly.com) – Toronto-based Yamana Gold has agreed to sell three noncore operating mines - San Andres, in Honduras, and the Sao Francisco and Sao Vicente mines in Brazil, to Canadian junior Aura Minerals, the companies announced on Tuesday evening.

Aura will pay about $90-million in cash, $70-million in deferred cash payments and $40-million in Aura common shares.

"This transaction streamlines our asset portfolio, further focusing on our core assets, on our core operating jurisdictions and on advancing our high-returning development stage projects, effectively positioning Yamana for the next wave of growth," said Yamana CEO Peter Marrone.

"The sale of these non-core mines is expected to result in lower cash operating costs, higher margins and increased reserves, production and cash flow per mine.”

The transaction will close in two parts in order to accommodate jurisdiction-related regulatory requirements.

The first part, which relates to the sale of San Andres, is expected to close on July 23, at which time Yamana will receive a total consideration of approximately $74-million.

The second part, which relates to the sale of Sao Francisco and Sao Vicente, is expected to close by year-end.

Yamana also will retain a contingent cash flow-based royalty on San Andres, Sao Francisco and Sao Vicente that will provide additional payments to Yamana of up to $40-million, which it expects to receive with payments beginning as early as 2012.

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