Premier Gold Mines (TSX: PG) this morning announced that it is currently examining certain “asset reorganization options” as a means of unlocking shareholder value for its current portfolio of properties. Chiefly, the company is looking at a potential spin-out of jts US based subsidiary to its shareholders, which includes its Nevada assets.
The current proposal outlines the firms South Arturo and McCoy-Cove properties being spun out into a stand alone, US-domiciled gold firm focused on gold operations within the United States. The line of thought here is that such a transaction would result in two streamlined, highly focused operations for shareholders that better recognizes the “sum of the parts” of the company.
The South Arturo property is a joint venture with that of Nevada Gold Mines, whom operates the project currently. It saw its underground operations brought into production in the second half of 2019, with additional developments currently being assessed along with further exploration being conducted on the site for proposed open pits.
The McCoy-Cove project is currently in the process of seeing its hydrological modelling study being completed along with further metallurigcal work. The company will then look to complete delineation drilling, bulk sampling, and a feasibility study. A preliminary economic assessment of the property has shown indicated mineral resources of 342,000 ounces of gold as well as 1,322,000 inferred ounces of gold at 0.327 ounces per tonne.
The proposed spin out is still currently being assessed with a final decision not having been made as of yet.
Premier Gold Mines last traded at $2.83 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.
