Kenorland Minerals (TSXV: KLD) has welcomed Centerra Gold (TSX: CG) as a new shareholder, after the Canadian gold producer acquired a 9.9% stake. This acquisition joins Sumitomo Metal Mining, consolidating itself as two of the company’s largest investors.
Kenorland shares soared to a 52-week high of C$0.90 following the financing announcement. As of 11:40 a.m. ET, shares fell slightly to C$0.89, with a market capitalization of C$58.3 million.
Investment Details
Centerra made the investment through a private placement arranged by Kenorland. Under this agreement, it plans to issue approximately 8.3 million common shares to domestic, Quebec and Manitoba subscribers at different prices. Estimated total proceeds for the company are C$9.86 million, based on an average issue price of C$1,186 per share. Kenorland will use the funds to advance its exploration projects in Canada, many of which are in partnership with other companies.
The company is already working with Centerra on the Hunter project in Quebec. In this, Centerra can earn an initial 51% interest by spending C$5 million on exploration and an additional 19% by delivering a technical study establishing a one million ounce resource.
Project Expansion
CEO Zach Flood commented: “Having collaborated with Centerra on the Hunter, Quebec project since 2022, we look forward to continuing to build on this relationship as we expand our exploration footprint in North America.” Flood added that the proceeds from this premium financing will go directly to advancing and expanding multiple early-stage exploration initiatives, including the completion of several large-scale geochemical surveys in Quebec, Ontario and Manitoba.
In addition to Centerra, the company also collaborates with major companies such as Newmont (TSX: NGT; NYSE: NEM; ASX: NEM), Freeport-McMoRan (NYSE: FCX), Barrick Gold (TSX: ABX; NYSE: GOLD) and Antofagasta ( LSE: ANTO) in several projects. It had also collaborated with Sumitomo on the Frotet gold project in Quebec, before converting its interest into a 4% net smelter return royalty in January 2024.
Impact on the Industry
Centerra’s entry as an investor in Kenorland is a clear indication of confidence in the company’s exploration potential. Partnerships with multiple large mining companies not only provide the capital needed to advance projects, but also bring technical and operational expertise.
Kenorland continues to show its commitment to the development of sustainable and economically viable mining projects in Canada. The collaboration with Centerra and other industry giants reinforces its position as a key player in the mineral exploration sector.
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