Centerra Gold announces US$200 million sale of royalty portfolio and Kemess silver stream
On May 17, 2018, Centerra Gold Inc. ("Centerra") announced that its wholly-owned subsidiary, AuRico Metals Inc. ("AMI"), entered into agreements with Triple Flag Mining Finance Bermuda Ltd. ("Triple Flag") in connection with the sale of AMI's royalty portfolio and a silver stream on the Kemess project for combined aggregate proceeds of US$200 million.
Royalty Portfolio Sale
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 of its Kliyul, Chuchi and Redton exploration properties, respectively, for up-front cash proceeds of US$155 million, subject to customary adjustments. The royalty sale is expected to be completed during the second quarter of 2018 following the satisfaction of customary conditions to closing.
Kemess Silver Stream
The Kemess Stream consists of the sale of 100% of the silver production from the Kemess project. Triple Flag will pay AMI cash consideration of US$45 million as an advance payment, payable in tranches of US$10 million, US$10 million, US$12.5 million and US$12.5 million on the public announcement by Centerra that its board of directors has approved a construction decision with respect to the Kemess underground development project and the three succeeding anniversaries of such date, respectively. In addition, Triple Flag will make ongoing payments of 10% of the then current market price for each ounce of silver delivered.
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 and is the largest Western-based gold producer in Central Asia.
Triple Flag primarily targets streaming and royalty investments in the mining sector with backing by Elliott Management Corporation, an experienced global investment firm with more than US$34 billion of assets under management, as of January 1, 2018.
Further information can be found on Globe Newswire's website.