21 Oct Centerra completes $1.1b Thompson Creek acquisition
Centerra Gold (TSX:CG) has completed the US$1.1 billion purchase of US-based Thompson Creek Metals (TSX:TCM) adding a large new asset to its portfolio.
The Toronto-based miner will acquire the Mount Milligan project – a British Columbia mine with reserves estimated at 5.7 million ounces of gold and 2.2 billion pounds of copper.
The deal, first announced in July, works for both sides as Centerra reduces its exposure to risk at the Kumtor mine in Kyrgyzstan and Thompson Creek can use the cash to service its $800 million debt pile due between 2017-2019.
“With the completion of the acquisition of Thompson Creek we have created a geographically diversified gold producer with a high quality producing platform and a strong growth pipeline,” said Centerra CEO Scott Perry.
“The transaction diversifies Centerra’s operating platform and adds low-risk production and cash flow from a very high quality, long-lived asset in Mount Milligan and creates a leading low cost mid-tier gold producer.
“The acquisition establishes an operating base in Canada – one of the lowest risk mining jurisdictions in the world – which will complement our Canadian-based Greenstone project and provide for further flexibility to expand into the Americas and adds to our existing high-quality growth project pipeline (Öksüt in Turkey, Gatsuurt in Mongolia, and Greenstone in Canada).”