Centerra sells royalty portfolio, Kemess silver stream for $200m

17th May 2018

By: Henry Lazenby

Creamer Media Deputy Editor: North America


Font size: - +

VANCOUVER ( – Canadian gold miner Centerra Gold has agreed to sell its royalty portfolio and silver stream on the Kemess project, in British Columbia, to Triple Flag Mining Finance Bermuda for $200-million.

The royalty sale comprises the sale of subsidiary AuRico Metals’ (AMI’s) royalty portfolio, together with new 0.5%, 2% and 2% net smelter return royalties on AMI’s Kliyul, Chuchi and Redton exploration properties, respectively, for up-front cash proceeds of $155-million, subject to customary adjustments, including an economic effective date of April 1. 

The Kemess stream comprises all the silver output from the Kemess project, estimated at 4.5-million ounces over a 12-year mine life.

Under the terms of the agreement, Triple Flag will pay AMI $45-million in cash as an advance payment, payable in tranches following a Centerra board decision to proceed with construction of the Kemess underground project and the three succeeding anniversaries of such date, respectively. Triple Flag will also make ongoing production payments pegged at 10% of the then market price for each ounce of silver delivered.

“The royalty sale and the Kemess stream represent a compelling way for the company to realise significant cash proceeds from noncore assets, which will further enhance our strong balance sheet and assist in funding Centerra’s growth development pipeline,” Centerra president and CEO Scott Perry stated.

Triple Flag CEO Shaun Usmar pointed out that the high-quality Centerra precious metals royalty portfolio is a “perfect fit” for Triple Flag’s substantial and growing portfolio of precious metal royalty and streaming assets. “The Kemess silver stream also nicely complements our suite of growth assets.”

The transaction is expected to be completed during the second quarter, after satisfying customary conditions to closing.

Edited by Creamer Media Reporter



John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...


Latest Multimedia

sponsored by

Platinum, diamonds, hydrogen make headlines
Platinum, diamonds, hydrogen make headlines
19th July 2024
Magazine round up | 19 July 2024
Magazine round up | 19 July 2024
19th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.218 0.252s - 126pq - 2rq
1: United States
Subscribe Now
2: United States