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UPDATE 1-Centerra Gold to buy AuRico Metals in C$310 mln deal

Published 2017-11-07, 07:40 a/m
© Reuters. UPDATE 1-Centerra Gold to buy AuRico Metals in C$310 mln deal

Nov 7 (Reuters) - Canadian miner Centerra Gold Inc CG.TO said on Tuesday it would buy smaller rival AuRico Metals Inc AMI.TO in a deal valued at C$310 million ($243 million).

Centerra offered C$1.80 per share in cash, a 38.5 percent premium to AuRico last close on Monday. miners have been boosting acquisitions at home as they come under pressure from foreign governments over profit-sharing at crucial mines.

Toronto-based Centerra reached an agreement with Kyrgyzstan in September to settle all outstanding disputes over the Kumtor gold mine, the company's biggest. this year, miner Alamos Gold Inc AGI.TO AGI.N , agreed to buy Richmont Mines Inc RIC.TO RIC.N in a deal valued at about C$905 million, creating a top-10 gold producer in North America. deal will be funded through cash in hand and debt and is expected to close in January 2018, the companies said in a joint statement.

Scotia Capital was financial adviser to Centerra, while Macquarie Capital Markets Canada Ltd advised AuRico.

($1 = 1.2762 Canadian dollars)

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