White Tiger Gold has entered into a binding agreement with Century Mining to form a ‘business combination’.

Under the terms of agreement, Century Mining shareholders will receive 0.40 of a White Tiger common share for each common share of Century held.

The total transaction is expected to cost C$855m (US$725m).

The newly combined entity will have a diversified portfolio of mines and projects, with both underground and open pit operations.

The combined production capacity this year will reach 111,000oz to 121,000oz of gold, including the production from Century’s Lamaque gold project and San Juan mine and White Tiger’s Savkino mine.

White Tiger Gold CEO Geoffrey Cowley said the newly formed company would have a portfolio of production, development and exploration assets with increased access to the financial markets.