Kenorland Minerals (TSXV: KLD) has welcomed Centerra Gold (TSX: CG) as a new shareholder after the Canadian gold producer took up a 9.9% stake, joining Sumitomo Metal Mining as its two biggest company investors.
Kenorland’s shares surged to a 52-week high of C$0.90 on Tuesday’s financing announcement. By 11:40 a.m. ET, it had retreated slightly to C$0.89 for a market capitalization of C$58.3 million.
Centerra made the investment through a private placement arranged by Kenorland, under which it plans to issue approximately 8.3 million flow-through common shares to national, Quebec- and Manitoba-based subscribers at different prices.
Total proceeds to the company is estimated at C$9.86 million, based on an average issue price of C$1.186 per share. Kenorland said will use the funds to advance its group of exploration-stage projects across Canada, many of which are under partnerships.
The company is already working with Centerra on the Hunter project in Quebec, in which the latter can earn an initial 51% interest by spending C$5 million on exploration and a further 19% by delivering a technical study that establishes a million-ounce resource.
“Having partnered with Centerra on the Hunter Project, Quebec, since 2022, we look forward to continuing to build on this relationship as we expand our exploration footprint in North America,” commented CEO Zach Flood in a news release.
“The proceeds of this premium financing will go directly towards advancing, and expanding upon, multiple greenfields exploration initiatives, including the completion of several large-scale, property-wide and follow-up geochemical surveys in Quebec, Ontario and Manitoba.”
In addition to Centerra, the company is also working with majors including Newmont (TSX: NGT; NYSE: NEM; ASX: NEM), Freeport-McMoRan (NYSE: FCX), Barrick Gold (TSX: ABX; NYSE: GOLD) and Antofagasta (LSE: ANTO) on various projects. It had also partnered with Sumitomo on the Frotet gold project in Quebec, before converting its JV interest into a 4% net smelter return royalty in January of 2024.
Source: MINING.COM – Read More
