Premier Gold Mines (TSX: PG) this morning announced that it has entered a definitive purchase agreement to acquire that of Osgood Mining Company from Waterton Global Resource Management. Osgood is the current owner of the Getchell project, located near Winnemucca, Nevada. Total consideration for the acquisition amounts to US$50 million in cash and shares.
Upon closing, Premier Gold Mines will own a 100% interest in the project, with the project becoming one of the firms core Nevada assets. The property is located at the intersection of the Getchell gold belt and the Battle Mountain-Eureka trend, south of the Turqouise Ride operation owned by Nevada Gold Mines.
The property itself has been mined in the past, with an open pit mine being in operation on the property from 1980 through to 1999. The mine however has been in care and maintenance since 2015, with underground testing conducted on the property in the years prior.
Under the terms of the definitive agreement, the company will pay cash consideration in the amount of US$23.0 million, in addition to issuing 13,777,098 common shares and 12,756,572 common share purchase warrants. The property will also be subject to contingent consideration, with Premier required to pay US$5.0 million upon a positive production decision for the property, and an additional US$5.0 million upon the production of the first gold ounce on the property, so long as the price of gold is in excess of US$2,000 an ounce for a consecutive 60 day period.
Finally, the company has also agreed to terms to purchase additional adjacent properties. Should the firms US assets be spun out as previously contemplated, all contingent consideration, and all assets announced today, would be the responsibility of Premier Gold USA.
Premier Gold Mines last traded at $2.76 on the TSX.
Information for this briefing was found via Sedar and Premier Gold Mines. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
