November 7, 2017 / 12:45 PM / 15 days ago

Centerra Gold to buy AuRico Metals in C$310 million deal

(Reuters) - Canadian miner Centerra Gold Inc (CG.TO) said on Tuesday it would buy smaller rival AuRico Metals Inc (AMI.TO) in a deal valued at C$310 million ($243 million).

Centerra offered C$1.80 per share in cash, a 38.5 percent premium to AuRico last close on Monday.

Canadian miners have been boosting acquisitions at home as they come under pressure from foreign governments over profit-sharing at crucial mines.

Toronto-based Centerra reached an agreement with Kyrgyzstan in September to settle all outstanding disputes over the Kumtor gold mine, the company’s biggest.

Earlier this year, miner Alamos Gold Inc (AGI.TO) (AGI.N), agreed to buy Richmont Mines Inc (RIC.TO) (RIC.N) in a deal valued at about C$905 million, creating a top-10 gold producer in North America.

Centerra’s deal will be funded through cash in hand and debt and is expected to close in January 2018, the companies said in a joint statement.

Scotia Capital was financial adviser to Centerra, while Macquarie Capital Markets Canada Ltd advised AuRico.

Reporting by Ahmed Farhatha in Bengaluru; Editing by Saumyadeb Chakrabarty

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