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.