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Centerra Gold Announces Friendly Acquisition of AuRico Metals
Centerra Gold Announces Friendly Acquisition of AuRico Metals Canada NewsWire TO...
About this update from Centerra Gold Inc.
[{"type":"text","content":"\n\n\n\nCenterra Gold Announces Friendly Acquisition of AuRico Metals\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Nov. 7, 2017\n\n\n\nTORONTO, Nov. 7, 2017 /CNW/ - Centerra Gold Inc. (\"Centerra\" or the \"Company\") (TSX:CG) and AuRico Metals Inc. (\"AuRico Metals\") (TSX:AMI) are pleased to announce that they have entered into a definitive arrangement agreement (the \"Arrangement Agreement\") whereby Centerra will acquire all of the issued and outstanding common shares of AuRico Metals (the \"Arrangement\") for C$1.80 in cash consideration per share (the \"Purchase Price\"), representing an aggregate transaction value of C$310 million.\n\nThe Purchase Price represents a 38% premium to the closing price of AuRico Metals' common shares on the Toronto Stock Exchange (\"TSX\") on November 6, 2017 and a premium of 37% to the 20-day volume weighted average price (\"VWAP\") as of such date.\n\nAuRico Metals is developing the Kemess property in British Columbia, Canada; a low-cost brownfield development asset that is host to the feasibility-stage Kemess Underground (\"KUG\") and preliminary economic assessment level Kemess East (\"KE\") projects. AuRico Metals also owns a high-quality, free-cash flow generating royalty portfolio which includes a 1.5% net smelter return (\"NSR\") royalty on the Young-Davidson gold mine in Ontario and a 2.0% NSR royalty on the Fosterville mine in Australia. Together with Centerra's low-cost, long-lived Kumtor Mine in the Kyrgyz Republic and the Mount Milligan Mine in British Columbia, Canada, Centerra is expected to be firmly established as a low-cost gold producer with a geographically diversified footprint and peer-leading development pipeline. Post-transaction, Centerra is expected to sustain and grow its production base with its strong balance sheet and liquidity profile, sector leading operating margins, and low capital requirements.\n\nHighlights of the Transaction:\n\n\nEnhances Centerra's high-quality asset base in a world-class jurisdiction: The Kemess property adds a future cornerstone asset that will fu...