Markets don’t really like joint ventures, and Pacific Ridge Exploration (PEX.V) has reduced the risk of the market snubbing off reaching critical mass at Kliyul ‘because there already is a large joint venture partner’ by entering into an agreement with Centerra Gold (CG.TO, CGAU) to immediately acquire full ownership of both the Kliyul and Redton projects.
Pacific Ridge will issue just under 17 million shares to a subsidiary of Centerra, making Centerra the largest shareholder on record. Meanwhile, all previous requirements to establish a 75% majority stake have now been extinguished. A fair deal, and owning 100% of Kliyul will provide Pacific Ridge with plenty of options to move the project forward once the critical mass has been reached.
CEO Blaine Monaghan presented in Brussels earlier this month, and the focus on Kliyul this year will indeed be on building tonnage to drill-test the expansion potential of the project. Meanwhile, Antofagasta (ANTO.L) will be drilling RDP this year to follow up on the thick and economic-grade mineralization it encountered last year.
Disclosure: The author has a small long position in Pacific Ridge. Pacific Ridge Exploration is a sponsor of the website. Please read our disclaimer.
