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Thursday, February 5, 2015

Centerra teams with Premier to develop Ontario gold property, (TSE: CG.TO)

Centerra Gold Inc and Premier Gold Mines Ltd have formed a joint venture to develop Premier's Trans-Canada property in Ontario, including the advanced Hardrock gold project, the Canadian companies said on Thursday.Centerra, which operates gold mines in Kyrgyzstan and Mongolia, will pay an initial C$85 million ($67.84 million) for a 50 percent stake in the partnership, and could contribute a total of C$300 million in cash."Initially we view this transaction positively since it represents a dilution of (Centerra's) Central Asian risk," TD Securities analyst Greg Barnes said in a note."With net cash of $328 million at the end of Q3/14, we believe that Centerra is well positioned to fund its development pipeline, particularly given the staged payments and capex for the Hardrock project."

Centerra Gold Inc. (Centerra) is a gold mining company. Shares of CG traded higher by 3.34% or $0.25/share to $7.74. In the past year, the shares have traded as low as $3.16 and as high as $7.83. On average, 834155 shares of CG.TO exchange hands on a given day and today's volume is recorded at 752241.