Premier Gold Offers to Purchase Centerra’s 50% Stake in Greenstone Gold Mines Partnership

Premier Gold Mines Ltd (TSX: PG), through its assignee, has offered to purchase Centerra Gold Inc (TSX: CG)‘s 50% interest in the Greenstone Gold Mines Partnership for the amount of $205 million USD.

The Hardrock Mine Project, which is located in Ontario, is the Greenstone Gold Mines Partnership (GGM) primary asset. The large-scale mining operation has Environmental Assessment approval at both the provincial and federal level, in addition to 2016 Feasibility Study which furthered positive project economics. GGM has also recently updated the mineral resource estimate, and has gained approval from local First Nations communities in addition to gaining approval from provincial and federal governments. Although the Hardrock project is currently in the development stage, it is quoted as being “shovel ready” for the company that overtakes the project.

The acquisition offer for Centerra’s 50% interest was proposed alongside Premier’s assignee, which was responsible for conducting due diligence regarding the updated 2019 economic study and mineral resource estimate for the Hardrock Mine Project. Thus, the assignee has the capability to purchase Centerra’s 50% share of GGM, in addition to furthering construction of the Hardrock Mine Project. The assignee will also bare the responsibility of aiding Premier in acquiring adequate financial resources to pay for its share of mining construction costs.

As per the offered agreement, Centerra will receive a cash amount of $175 million USD, and all of its partnership agreement obligations will be transferred to Premier and its assignee. In addition, the earn-in obligation of $30 million USD will also be paid to Centerra.

Centerra Gold Inc is a Canadian gold mining and exploration company focused on exploration, operation, and development of properties in North America and Asia.

Premier Gold Mines Ltd is also a gold mining company focused on the exploration and development of precious metals in Canada, Mexico, and the United States. The company last traded at $1.19 on the TSX.


Information for this briefing was found via Sedar and Premier Gold Mines Ltd. 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.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Bank Of America Lowers Gold Price Target To $2000? – The Daily Dive feat John-Mark Staude

Returning to the Daily Dive today is that of John-Mark Staude of Riverside Resources (TSXV:...

Wednesday, December 16, 2020, 01:00:00 PM

London Metal Exchange To Cease Trading In Gold, Silver

The London Metal Exchange is exiting the precious metals business. The exchange today indicated that...

Friday, April 22, 2022, 02:30:00 PM

Great Bear Intersects 2.24 g/t Gold Over 77.40 Metres In Latest LP Fault Results

Great Bear Resources (TSXV: GBR) this morning reported further drill results from the LP Fault,...

Monday, June 21, 2021, 08:27:40 AM

Caldas Gold To Be Renamed, New High Profile Management & Board Appointed

Caldas Gold Corp (TSXV: CGC) is getting a new facelift. The company this morning announced...

Monday, November 23, 2020, 08:40:49 AM

New Found Gold Drills 150.28 g/t Gold Over 11.50 Metres At Lotto Zone

New Found Gold (TSXV: NFG) continues to report strong drill results from its Queensway Project...

Wednesday, June 23, 2021, 07:59:16 AM