Canadian resource development company Thesis Gold has completed its private placement of common shares, through the issuance of 9.9% of the company’s issued and outstanding common shares to Centerra Gold.
Centerra has acquired 23.4 million common shares of Thesis at $1.03 each, amounting to gross proceeds of C$24.16m ($17.4m).
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The two companies entered into an investor rights agreement regarding the private placement. The agreement grants Centerra certain rights to maintain its shareholding interest in Thesis Gold.
These include financing and participation rights, a board nomination right if Centerra’s stake reaches 19.9% of the issued and outstanding common shares, and the ability to appoint members to a technical committee.
The funds raised from the placement are earmarked for working capital and general corporate purposes, including ongoing technical studies at Thesis Gold’s 100%-owned Lawyers-Ranch Project, located in British Columbia’s Toodoggone Mining District.
Lawyers-Ranch Project has showcased solid economic viability in the preliminary economic assessment, including a 35.2% after-tax internal rate of return and an after-tax net present value at a 5% discount rate of C$1.28bn.
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By GlobalDataThesis Gold’s 2025 roadmap aims to further develop the project through an exploration and drill programme, a prefeasibility study, and the initiation of the environmental impact assessment process.
Considering the closeness of Centerra’s Kemess asset to the Lawyers-Ranch project, Centerra has recognised the potential for synergies such as utilising existing infrastructure to tap into regional opportunities.
The Lawyers-Ranch project’s proximity to the Kemess asset opens up long-term collaboration opportunities that could improve efficiencies and facilitate future development throughout the Toodoggone district, according to Thesis Gold.
