The international gold and copper producer Centerra Gold Inc. (TSX: CG) has broadened its asset base by making a substantial investment in the Canadian miner Kenorland Minerals Ltd. (TSX-V: KLD).
Kenorland revealed Tuesday that Centerra is providing the company with a private placement valued at over C$9.8 million, thereby acquiring a 9.9 per cent stake. The deal will close by May 28.
“Having partnered with Centerra on the Hunter project in Quebec since 2022, we look forward to continuing to build on this relationship as we expand our exploration footprint in North America,” Kenorland President Zach Flood said.
Funds will be used for exploration work at the company’s mining projects in Manitoba, Ontario, Quebec, British Columbia and Saskatchewan. Kenorland’s shares surged to a high not observed since 2021 at C$0.90 apiece following news of the investment.
Kenorland and Centerra already had a partnership at Quebec’s Hunter gold project prior to the placement. Centerra will soon be a major shareholder alongside Japan’s Sumitomo Metal Mining Co Ltd (TYO: 5713).
Sonic drill rig pulling up to site at Quebec’s Hunter gold project. Photo credit: Kenorland Minerals
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Centerra focuses on Nevada’s Goldfield project
In 2022, Centerra acquired a 15,300-acre property near Tonopah in central Nevada. The gold producer will be investing around US$11 million in its development this year. An initial resource estimate is expected by the end of 2024.
The site’s open pit is in the late stages of development and the vast property has considerable exploration potential.
Prospecting in central and northern Nevada has been a popular undertaking for many years. Companies like Allegiant Gold Ltd. (TSX-V: AUAU) and U.S. Gold Corp. (Nasdaq: USAU) have been active in this regard recently.
The state has several open-pit and underground mines, primarily developed within Carlin-type gold deposits. Nevada is also home to one of the world’s largest and highest-grade molybdenum deposits at Mount Hope.
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