Canada’s Centerra Gold (TSX:CG) is selling its subsidiary AuRico Metals’ royalty portfolio and a silver stream on its Kemess project to Triple Flag Mining Finance Bermuda, in a deal valued at $200 million.
The transaction, said the company’s President and chief executive, Scott Perry, is meant to generate cash to continue developing key projects, as well as growing the miner’s pipeline, through the sale of non-core assets. He said the move would also allow Centerra strengthen its balance sheet.
The Toronto-based miner said the deal implied selling AuRico Metals’ royalty portfolio, including net smelter returns royalties on Kliyul, Chuchi and Redton exploration properties, an upfront cash payment of $155 million.
In the case of its Kemess property, located in Northern Interior of British Columbia, Canada, Centerra is selling 100% of the project’s silver production for $45 million, which will be payable in four tranches.
In the last two year, the company has made an effort to grow its portfolio in safe jurisdictions. In 2016, it bought out US-based Thompson Creek Metals, which gave it access to the namesake molybdenum mine in Idaho, as well as the Mount Milligan copper-gold mine in British Columbia, Canada. And in November, Centerra announced the acquisition of smaller rival AuRico Metals, which was completed in January.
More to come…
The post Centerra gets $200 million for royalty portfolio and Kemess silver stream appeared first on MINING.com.
From:: Mining.com