Centerra Gold announced that its subsidiary AuRico Metals (AMI) has entered into an agreement Triple Flag Mining Finance Bermuda to sell royalty portfolio and a silver stream on its Kemess project for $200m.


Image: Silver bullion bar 1000oz top view. Photo courtesy of Unit 5/Wikipedia.

The royalty sale consists of the sale of AMI’s royalty portfolio, together with new 0.5%, 2.0% and 2.0% net smelter returns royalties on AMI’s Kliyul, Chuchi and Redton exploration properties, respectively.

After the completion of customary conditions to closing, the Royalty Sale is expected to be completed during the second quarter of 2018.

The Kemess Stream comprises the sale of 100% of the silver production from the Kemess project.

Centerra president and CEO Scott Perry said: ““The Royalty Sale and the Kemess Stream represents a compelling way for the Company to realize significant cash proceeds from non-core assets which will further enhance our strong balance sheet and assist in funding Centerra’s growth development pipeline.”

While Scotiabank acted as financial advisor to Centerra in the transaction, Stikeman Elliott LLP served as its legal advisor.

Centerra Gold is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide.

It is one of the largest Western-based gold producers in Central Asia.

It operates two flagship assets, the Kumtor Mine in the Kyrgyz Republic and the Mount Milligan Mine in British Columbia, Canada.

Currently, the company is building its 100% owned Öksüt Gold Mine in Turkey.

In January, it completed the acquisition of AuRico Metals.

Triple Flag Mining Finance CEO Shaun Usmar said: “The high-quality Centerra precious metals royalty portfolio is a perfect fit for Triple Flag’s substantial and growing portfolio of precious metal royalty and streaming assets.

“The Kemess silver stream also nicely complements our suite of growth assets. We look forward to our ongoing partnership with the Centerra team.”