Centerra Gold Inc. has entered into a binding Share Purchase Agreement with Stratex International Plc. to acquire Stratex’s 30% interest in the Öksüt Gold Project located in Turkey. Upon completion of the transaction, Centerra will own 100% of the Öksüt Gold Project.
Consideration for Stratex’s interest in the project consists of a $20 million cash payment at closing and a 1% Net Smelter Return royalty on the project.
Centerra and Stratex are parties to a joint venture arrangement, formed in 2009, to explore the Öksüt Gold Project. Centerra earned an initial indirect 50% interest in the project by advancing $3 million to the joint venture through October 2011 and acquired an additional 20% interest in the project with an additional contribution of $3 million, which it completed in October of this year. Through November, Centerra has advanced $6.8 million for exploration work on the Öksüt Gold Project. Centerra’s initial resource estimate is expected to be released in early 2013.