Located in a Tier 1 mining jurisdiction of Nevada, Goldfield is a conventional open-pit and heap leach project in late-stage development
Centerra has agreed to acquire Goldfield District project in Nevada. (Credit: István Mihály from Pixabay)
Centerra Gold, through its subsidiary Centerra (U.S.), has agreed to acquire Goldfield District project owner Gemfield Resources from Waterton Nevada Splitter in a deal valued at around $206.5m.
The deal includes a cash payment of $175m at closing, as well as an additional $31.5m deferred milestone payment in cash or Centerra shares.
Located in a Tier 1 mining jurisdiction of Nevada, Goldfield is a conventional open-pit and heap leach project in late-stage development.
The project consists of three deposits, including Gemfield, Goldfield Main and McMahon Ridge. Gemfield is said to be the first pit for potential development.
Centerra stated it anticipates that the project has significant upside potential from its large and underexplored land position in an established mining area in Nevada.
With a resource estimate expected to be released in the first half of next year, the company intends to further refine existing technical studies conducted to date by Waterton.
Later, the company will provide an updated feasibility study.
Centerra president and CEO Scott Perry said: “We are very excited to be adding this high-quality development project and its substantial Tier 1 jurisdiction land package to our portfolio.
“Similar to our Öksüt Mine, Goldfield will be a heap leach mine, with low initial capital outlay and low projected production costs.”
TD Securities served as financial advisor to Centerra, while Stikeman Elliott and Snell & Wilmer served as legal advisors to Centerra.
The acquisition is expected to offer an anchor asset that could serve as a foothold for further opportunities for the company in the US.
At present, Centerra has five active exploration joint ventures in the US and six in Canada.
In June 2020, the company commenced commercial production at the Oksut gold mine located in Turkey.