Kenorland Minerals (KLD.V) has confirmed it has arranged a non-brokered flow-through placement to Centerra Gold (CG.TO, CGAU) which will result in Centerra owning 9.9% of Kenorland’s share count. Kenorland will issue just over 6.2 million flow-through shares at C$1.12 per share, 1.4 million Quebec flow-through shares at C$1.424 per share and just under 700,000 Manitoba flow-through shares at C$1.296 per flow-through share. The total proceeds will come in at C$9.86M which works out to a weighted average price of just under C$1.19/share.
While Kenorland was (and still is) flush with cash, the flow-through shares will allow it to accelerate its exploration activities on its earlier stage properties without having to touch the precious hard dollars it has in the till. Meanwhile, Centerra gets a foot in the door in case the grassroots exploration program by Kenorland makes more discoveries while the 4% NSR on the Frotet gold project in Quebec is very valuable as well. Sumitomo has notified Kenorland it wants to retain its 10.1% equity stake in Kenorland.
Disclosure: The author has a long position in Kenorland Minerals. Please read the disclaimer.
