Canadian-based Centerra Gold has completed the acquisition of US company Thompson Creek Metals for $1.1bn.
Under the agreement, Centerra acquired all shares of Thompson Creek in exchange for 0.0988 of a Centerra common share for each Thompson Creek common share.
The common shares of Thompson Creek were then transferred to Centerra's newly formed wholly owned subsidiary, Centerra.
Thompson Creek operates the Mount Milligan Mine in British Columbia, Canada.
Centerra Gold CEO Scott Perry said: "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.
“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 mid-tier gold producer."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The company said that the acquisition will complement its Canada’s Greenstone project and provide flexibility for expanding into the Americas.
Furthermore, it will add to Centerra’s existing growth project pipeline that includes Öksüt in Turkey, Gatsuurt in Mongolia, and Greenstone in Canada.
The combined company is expected to be established as a low-cost gold producer with a geographically diversified footprint.
Originally announced on 5 July, Royal Gold's streaming interest at the Thompson Creek’s Mount Milligan Mine has been amended upon closing the transaction.
Under the amendment terms, Royal Gold's 52.25% gold stream at the mine has been converted to a 35% gold stream and 18.75% copper stream.