Azimut and Centerra Sign Option Agreement for the Corvet and Kaanaayaa Properties
Centerra Gold partners with Azimut to advance exploration on Quebec properties, targeting high-grade gold deposits to drive future growth.
Azimut Exploration Inc. has signed a definitive option agreement with Centerra Gold Inc. to earn up to a 70% interest in the Corvet and Kaanaayaa gold-copper properties in Quebec. The transaction is structured in two stages. The initial 51% earn-in requires $6 million in exploration expenditures and $250,000 in cash payments over four years. A second option allows Centerra to earn an additional 19%, totaling 70%, by delivering a preliminary economic assessment with a minimum 1 moz AuEq resource, incurring $10 million in expenditures and $600,000 in cash payments over six years.
Centerra is a related party holding approximately 12.67% of Azimut’s shares; the transaction was approved by the board relying on specific exemptions under MI 61-101. If Centerra does not exercise the Second Option, its interest adjusts to 49%, and Azimut’s interest increases to 51%. Initial systematic till sampling is scheduled to start mid-October 2026, leading to a field validation phase next spring.
Centerra Gold Inc. (CG) has entered into an Azimut option agreement, a strategic, partner-funded exploration deal that does not immediately impact the company’s producing asset base, production volumes, or cost structure. The arrangement aligns with Centerra’s stated strategy of leveraging its balance sheet and technical expertise to advance exploration assets without heavy upfront capital.
Given Centerra’s strong execution on its self-funded growth strategy, which includes the Thompson Creek, Goldfield, and Kemess PFS projects, this deal is considered incremental and serves to de-risk exploration upside through shared funding. The market has already priced in Centerra’s strong execution, with the stock up approximately 41% since the Q2 earnings release.
Centerra Gold Inc. (CG) is a producing gold and copper miner with assets in Canada, the United States, and Turkey. Its producing assets include the Mount Milligan mine in British Columbia, Canada, and the Öksüt mine in Turkey. The company’s development projects consist of Thompson Creek in Idaho, USA, and Goldfield in Nevada, USA. Additionally, Centerra Gold holds exploration and pre-feasibility assets at Kemess in British Columbia, Canada, and Langeloth in Pennsylvania, USA. The company operates under a self-funded growth strategy, leveraging cash flows from its producing assets to fund development and exploration.