Centerra Gold (TSX: CG) is taking a 9.9% stake in Kenorland Minerals (TSXV: KLD; US-OTC: KLDCF), joining Sumitomo Metal Mining as one of the junior’s biggest investors.
Centerra is acquiring the interest in Kenorland by participating in a $9.9-million private placement financing. Kenorland plans to issue roughly 8.3 million flow-through common shares to national, Quebec and Manitoba-based subscribers at different prices. The average issue price will be $1.186 per share.
Kenorland’s shares surged to a 52-week high of 90¢ on the announcement. The company has a market capitalization of $58.3 million.
Kenorland said it 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. Centerra can earn an initial 51% interest in the project by spending $5 million on exploration and a further 19% by delivering a million-ounce resource.
“Having partnered with Centerra on the Hunter project, since 2022, we look forward to continuing to build on this relationship as we expand our exploration footprint in North America,” CEO Zach Flood said 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.
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