Centerra Gold Inc. (TSX: CG) seems to be refocusing its efforts in North America. The mining firm announced today the definitive agreement to acquire Gemfield Resources, the owner of the Goldfield District project.
The company is buying out the Nevada-based mining firm from Waterton Nevada Splitter for total consideration of US$206.5 million. This consists of US$175 million in cash at closing and US$31.5 million in future milestone payments payable in either cash or shares.
The project is said to be “a conventional open-pit, heap leach project in late-stage development” that contains three known deposits: Gemfield, Goldfield Main, and McMahon Ridge. The company compares the property as being similar to its own Öksüt Mine in Turkey.
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Prior to the acquisition, the mining firm currently has five active exploration joint ventures in the United States and six in Canada. The company seems to be refocusing its expansion in the North American continent following the saga with the Krygyzstan government regarding the contested Kumtor mine. While the firm is already looking to settle the issue, it has recorded at least US$926.4 million in losses related to the seizure of the mine by the government.
The firm expects to release a resource estimate on the property by the first half of 2023 and a feasibility study thereafter.
The company also announced in January its preliminary production results for 2021, highlighting an annual gold production of 308,141 ounces. In 2022, it estimates to produce 400,000 to 450,000 gold ounces.
Centerra Gold Inc. last traded at $11.39 on the TSX.
Information for this briefing was found via mining.com and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
