Centerra Gold (TSE: CG) (NYSE: CGAU) bought 9.9 per cent of Thesis Gold (CVE: TAU) (OTCMKTS: THSGF), attracted to the company’s growth potential and its flagship project, which is next to its Kemess gold-copper in British Columbia.
The gold miner said in a Tuesday press release that it will pick up 23.5 million of Thesis common shares at CAD$1.03 a share for CAD$24.2 million. The issue price also represents a 10 per cent premium to the five-day volume-weighted average price (VWAP) of Thesis Gold’s shares on the TSX Venture Exchange.
By noon eastern time, Thesis Gold traded at CAD$0.95, down 1.0 per cent for the day. Additionally, the company has a market capitalization of CAD$202.2 million. Earlier in the session, the stock hit a 52-week high of CAD$1.04.
“Centerra’s interest is a strong endorsement of the extraordinary potential of the Lawyers-Ranch project and the work our team has accomplished to date,” said Ewan Webster, CEO of Thesis Gold.
The Lawyers-Ranch project spans 495 square kilometer in the Toodoggone mining district of British Columbia. Further, this district shares a similar geological history and mineral potential with the prolific Golden Triangle to the west. The property also includes a former underground mine that operated from 1989 to 1992. During that time, it produced over 173,000 ounces of gold and 3.6 million ounces of silver.
Vancouver-based Thesis Gold is advancing the Lawyers-Ranch project through a pre-feasibility study. The company aims to build on the results of its October 2024 preliminary economic assessment.
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Thesis is working on beginning environmental process
The preliminary economic assessment (PEA) outlined a potential 14-year mine combining open pit and underground operations. It projected annual gold-equivalent production of 215,000 ounces. The study also estimated a post-tax net present value of CAD$1.3 billion using a five per cent discount rate.
The internal rate of return came in at 35.2 per cent. The project’s initial capital cost is approximately CAD$598 million.
The PEA relied on a mineral resource estimate of 82 million tonnes grading 1.11 grams per tonne (g/t) gold and 31.9 g/t silver in the measured and indicated category. It also included 12 million inferred tonnes at 1.48 g/t gold and 20.9 g/t silver.
In addition to the pre-feasibility study, Thesis is completing key baseline work to begin the environmental assessment process. The company is also running a summer exploration program to expand the Lawyers-Ranch resource.
“Thesis’ recent preliminary economic assessment, resource update and drill results are very encouraging and demonstrate the potential of this highly prospective district,” said Paul Tomory, CEO of Centerra.
Centerra’s Kemess project, located 45 km south of Lawyers-Ranch, hosted a former copper-gold mine. This mine produced approximately 3 million ounces of gold and 800 million pounds of copper over a 12-year period, ending in 2011.
Centerra Gold is a Canadian-based gold mining and exploration company. It operates primarily in North America, Asia, and other markets. Furthermore, it has key assets in Canada, the United States, Kyrgyzstan, and Turkey, focusing on gold production and development projects.
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