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Centerra's AuRico unit lands US$200M in deals on royalty sales, silver stream

Centerra Gold Inc. said May 17 that its AuRico Metals Inc. unit signed agreements for a silver stream on the Kemess project in British Columbia and to sell its royalty portfolio to Triple Flag Mining Finance Bermuda Ltd. for a total of US$200 million.

The Kemess property includes the Kemess North, Kemess East and Kemess South projects and the feasibility-stage Kemess Underground project. The royalty portfolio includes a 0.5% net smelter royalty over the Kliyul copper project, a 2% NSR over the Chuchi copper project and a 2% NSR over the Redton project, all of which are in British Columbia.

AuRico is selling the royalties for an upfront cash payment of US$155 million, subject to customary adjustments, including an economic effective date of April 1. This transaction is expected to close in the second quarter.

The silver stream will cover 100% of Kemess' silver output. Under the deal, Triple Flag will make an advance cash payment of US$45 million in three tranches and ongoing payments of 10% of the then current market price for each ounce of silver delivered.