July 5 (Reuters) - Centerra Gold Inc CG.TO
* 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
* Upon completion, existing Centerra, Creek shareholders
expected to own about 92% and 8%, respectively, of pro forma
company
* Deal expected to be accretive to cash flow, NAV, reserves
and production per share
* Addition of secondary crushing at Mount Milligan mine by
year end 2016, as planned, expected to increase throughput to
over 62,500 tpd
* All Thompson Creek outstanding shares will be exchanged on
basis of 0.0988 of centerra share for each Thompson Creek common
share
* Addition of secondary crushing at Mount Milligan mine by
year end 2016, expected to increase throughput to more than
62,500 tpd
* Redemption of Thompson Creek's notes expected to be
financed with new $325 million senior secured revolver, term
loan facility by scotiabank
* Arrangement agreement includes provisions including $35
million termination fee payable to Centerra under certain
customary circumstances
Source text for Eikon: ID:nCCN7MMm8c
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