Centerra’s Thompson Creek takeover establishes ‘leading low-cost gold producer’

JOHANNESBURG (miningweekly.com) – TSX-listed miner Centerra Gold has completed its acquisition of US-based Thompson Creek Metals, establishing a geographically diversified gold producer with a high-quality producing platform and a strong growth pipeline.

The companies announced Thursday that they had completed a plan of arrangement through which Centerra acquired all of the issued and outstanding common shares of Thompson Creek for 0.0988 of a Centerra common share.

“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, [creating] a leading low-cost midtier gold producer,” said Centerra CEO Scott Perry.

He added that the acquisition established an operating base in Canada, one of the lowest-risk mining jurisdictions in the world. “[This] will complement our Greenstone project and provide for further flexibility to expand into the Americas,” he added.

The common shares of Thompson Creek have been transferred to Centerra’s newly formed, wholly owned subsidiary, Centerra BC Holdings, issuing 22.3-million shares to the former Thompson Creek shareholders.

All of Thompson Creek's 7.375% senior notes, due 2018, and 12.5% senior notes, due 2019, have been redeemed at 101.844% and 106.250% of the principal amount redeemed, respectively, plus accrued and unpaid interest to October 20.

Thompson Creek operates the world-class Mount Milligan mine in British Columbia, a low-cost asset with more than two additional decades of profitable production expected from the current reserve base.