Centerra Gold Announces US$200 Million Sale of Royalty Portfolio and Kemess Silver Stream
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NEWS RELEASE
Centerra Gold Announces US$200 Million Sale of Royalty Portfolio and Kemess Silver
Stream
TORONTO, CANADA – May 17, 2018 – Centerra Gold Inc. (“Centerra”) (TSX: CG) announced today that
its wholly-owned subsidiary, AuRico Metals Inc. (“AMI”), has entered into agreements with Triple Flag Mining
Finance Bermuda Ltd. (“Triple Flag”) in connection with the sale of AMI’s royalty portfolio (the “Royalty
Sale”) and a silver stream on the Kemess project (the “Kemess Stream”) for combined aggregate proceeds of
US$200 million.
Scott Perry, President and CEO of Centerra commented, “The Royalty Sale and the Kemess Stream represents
a compelling way for the Company to realize significant cash proceeds from non-core assets which will further
enhance our strong balance sheet and assist in funding Centerra’s growth development pipeline.”
The Royalty Sale consists of the sale of AMI’s royalty portfolio, together with new 0.5%, 2.0% and 2.0% net
smelter returns royalties on AMI’s Kliyul, Chuchi and Redton exploration properties, respectively, for up-front
cash proceeds of US$155 million, subject to customary adjustments, including an economic effective date of
April 1, 2018. The Royalty Sale is expected to be completed during the second quarter of 2018 following the
satisfaction of customary conditions to closing.
The Kemess Stream consists of the sale of 100% of the silver production from the Kemess project. Triple Flag
will pay AMI cash consideration of US$45 million as an advance payment, payable in tranches of US$10
million, US$10 million, US$12.5 million and US$12.5 million on the public announcement by Centerra that its
board of directors has approved a construction decision with respect to the Kemess underground development
project and the three succeeding anniversaries of such date, respectively. In addition, Triple Flag will make
ongoing payments of 10% of the then current market price for each ounce of silver delivered.
Shaun Usmar, CEO of Triple Flag Mining Finance Ltd. commented, “The high-quality Centerra precious metals
royalty portfolio is a perfect fit for Triple Flag’s substantial and growing portfolio of precious metal royalty and
streaming assets. The Kemess silver stream also nicely complements our suite of growth assets. We look
forward to our ongoing partnership with the Centerra team.”
Advisors and Counsel
Scotiabank acted as financial advisor to Centerra and Stikeman Elliott LLP acted as Centerra’s legal advisor.
Torys LLP acted as Triple Flag’s advisor.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information. Such forward-looking information involves numerous
assumptions, risks, uncertainties and other factors that could cause actual events to differ materially from those
expressed or implied by such forward-looking information. All information, other than statements of historical
fact, is forward-looking information. In particular, forward-looking information in this news release includes,
but is not limited to assumptions and expectations with respect to the completion of the Royalty Sale and the
Kemess Stream, and the timing thereof. Forward-looking information is necessarily based upon a number of
1 University Avenue, Suite 1500
Toronto, ON
M5J 2P1
tel 416-204-1953
fax 416-204-1954
www.centerragold.com
2
estimates and assumptions that, while considered reasonable by us, are inherently subject to significant
business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause
actual results to differ materially from those projected in the forward-looking information. Centerra disclaims
any intention or obligation to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent required by applicable laws.
About Centerra
Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and
acquiring gold properties in North America, Asia and other markets worldwide and is the largest Western-based
gold producer in Central Asia. Centerra operates two flagship assets, the Kumtor Mine in the Kyrgyz Republic
and the Mount Milligan Mine in British Columbia, Canada and is building its 100% owned Öksüt Gold Mine
in Turkey. Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company
is based in Toronto, Ontario, Canada.
For more information:
John W. Pearson
Vice President, Investor Relations
(416) 204-1953
Additional information on Centerra is available on its web site at www.centerragold.com and at SEDAR
at www.sedar.com.
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