BRIEF-Centerra Gold to buy Thompson Creek Metals for $1.1 bln

Tue Jul 5, 2016 4:08pm EDT
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July 5 (Reuters) - Centerra Gold Inc

* Centerra Gold and Thompson Creek announce transformational business combination

* Total transaction value, including assumption of capital lease obligations, is equal to approx. $1.1 billion

* Centerra will redeem all of Thompson Creek's secured and unsecured notes at their call price plus accrued and unpaid interest

* Arrangement agreement has been approved by board of directors of each of Centerra and Thompson Creek

* Endako, Thompson Creek mines will be kept on care and maintenance, Thompson Creek mill will continue to be used as concentrate upgrade facility

* Exchange ratio for deal implies consideration of c$0.79 per thompson creek common share

* Upon deal closing, Royal Gold's 52.25% gold streaming interest at mount milligan to be amended to 35% gold stream, 18.75% copper stream

* Redemption of Thompson Creek's 9.75% secured notes to also be financed with c$170 million bought deal subscription receipt offering   Continued...