Centerra Gold Inc. and AuRico Metals Inc. have completed their previously announced arrangement where a direct wholly-owned subsidiary of Centerra acquired all of the issued and outstanding common shares of AuRico Metals for C$1.80 in cash consideration per share. The purchase price was funded through a combination of a new US$125 million acquisition facility and cash on hand of Centerra.
“With the completion of the acquisition of AuRico Metals, we have expanded our existing development pipeline to include a de-risked brownfield development asset, located in Canada, as well, we are adding a high-quality, free-cash flow generating royalty portfolio,” said Scott Perry, president and CEO of Centerra. “The Kemess property has the potential to be a low-cost, long life, significant gold and copper producer.”
Immediately following the completion of the arrangement, the wholly-owned Centerra subsidiary and AuRico Metals will form one company, using the name “AuRico Metals Inc.”