Centerra Gold has completed its acquisition of Thompson Creek Metals Co. Inc., which was previously announced on July 5, an all-stock transaction. Thompson Creek operates the Mount Milligan mine in British Columbia, Canada, a low-cost asset with more than two additional decades of profitable production expected from the current reserve base.
“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 Scott Perry, CEO of Centerra. “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 midtier gold producer.”
The acquisition, Perry explained, establishes an operating base in Canada, which will complement Centerra’s Canadian-based Greenstone project and add to the company’s existing project pipeline, which includes Öksüt in Turkey, Gatsuurt in Mongolia.
“Combining Centerra’s robust balance sheet and the significant positive cash flow generation from our low cost Kumtor mine with the positive cash flow from Thompson Creek’s Mount Milligan mine will ensure Centerra is well-positioned for the future,” Perry said.