07:37 AM EDT, 09/09/2024 (MT Newswires) -- Centerra Gold ( CGAU ) signed a deal to acquire a 9.9% stake in Headwater Gold, equivalent to 7 million common shares, for about $1.5 million Canadian dollars ($1.1 million), Headwater said Monday.

The agreement prices the investment at CA$0.22 apiece, according to Headwater.

Headwater said it plans to use the proceeds for exploration activities and general working capital, and expects the offering to close on Sept. 16.

Centerra will enter into an investor rights agreement with Headwater to retain certain limited rights, Headwater said.

Centerra shares were up 5.5% in recent Monday premarket activity.

Price: 6.74, Change: +0.35, Percent Change: +5.48