- Centerra Gold (TSX:CG), which expects to produce up to 290,000 ounces of gold and 60 million pounds of copper in 2025, will purchase a 9.9 per cent stake in Liberty Gold (TSX:LGD), an explorer and developer in the United States’ Great Basin, one of the most productive gold regions in the world
- Liberty’s flagship Black Pine project is estimated to contain 3.11 million ounces of gold in probable reserves
- Liberty Gold stock has added 63.89 per cent year-over-year but remains down by 72.04 per cent since 2020
Centerra Gold (TSX:CG), which expects to produce up to 290,000 ounces of gold and 60 million pounds of copper in 2025, will purchase a 9.9 per cent stake in Liberty Gold (TSX:LGD), an explorer and developer in the United States’ Great Basin, one of the most productive gold regions in the world.
This content has been prepared as part of a partnership with Centerra Gold Inc. and Liberty Gold Corp., and is intended for informational purposes only.
The C$28.01 million investment, made at C$0.56 per share, will serve to advance technical studies at Liberty’s flagship past-producing Black Pine project in Idaho, which is estimated to house 3.11 million ounces of gold probable, 4.16 million ounces indicated and 712,000 ounces inferred. A 2024 pre-feasibility study supports an after-tax net present value of US$552 million at a base-case of only US$2,000 per ounce of gold, with the price surpassing US$3,600 per ounce at the time of writing on September 8. Pegasus Gold produced 435,000 ounces of gold and 189,000 ounces of silver from the property from 1991 to 1997.
Centerra’s investor rights connected to the transaction, subject to shareholders thresholds, include financing participation rights, information rights, technical committee representation rights and the right to appoint one nominee to Liberty Gold’s board.
According to Monday’s news release, the investment is expected to close by October 1, 2025, with shares subject to a holding period of four months and one day, as dictated by Canadian securities law.
Leadership insights
“We are thrilled to welcome Centerra as a strategic investor in Liberty Gold,” Jon Gilligan, Liberty Gold’s chief executive officer (CEO), said in a statement. “Their investment is a strong endorsement of our progress and the compelling potential of our flagship U.S. oxide gold project, Black Pine. With Centerra’s technical depth, operational experience and existing presence in Idaho, we see a clear path to unlocking value and de-risking Black Pine’s development timeline. We look forward to collaborating closely as we accelerate Black Pine towards feasibility and on to a construction decision.”
“We are pleased to support the Liberty Gold team with this strategic investment,” added Paul Tomory, Centerra Gold’s CEO. “Liberty Gold’s 2024 pre-feasibility study on Black Pine, combined with the recent drill results from the legacy heap and Rangefront, demonstrate the potential of the asset and highlight areas where future resource growth may be possible. As the project moves through development, we believe our regional and operational expertise can complement Liberty Gold’s efforts and create meaningful synergies to bring Black Pine into production.”
About Liberty Gold
Liberty Gold is developing open-pit oxide deposits in the Great Basin of the United States.
Liberty Gold (TSX:LGD) stock is up by 11.32 per cent on the news trading at C$0.59 as of 9:48 am ET. The stock has added 63.89 per cent year-over-year but remains down by 72.04 per cent since 2020.
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