Premier Gold To Conduct $84.0 Million Financing Under i-80 Gold Subsidiary

Premier Gold Mines (TSX: PG) this morning announced a private placement in connection with its i-80 Gold Corp spinout. The financing will see gross proceeds of $88.4 million raised in the subsidiary of the company ahead of its proposed spinout.

The financing will see units of i-80 sold at a price of $2.60 per subscription receipt, with subscription receipts to be automatically exchanged for one common share of the company upon completion of the spinout. A total of 34.0 million receipts are expected to be issued, with a 15% over-allotment option also having been granted.

Furthermore, Equinox Gold (TSX: EQX), the firm acquiring Premier Gold, has agreed to subscribe for 30% of the receipts to be issued under the offering, up to a maximum of $28.3 million. Management and its affiliates are to subscribe for a further $5.8 million.

Proceeds from the financing are to be used for working capital and general corporate purposes, including the exploration and development of the firms projects and to fund the cash portion of the purchase price of the Getchell gold property.

The financing is currently slated to close the week of March 15, 2021.

i-80 Gold will effectively spin-out of Premier Gold upon the completion of the acquisition of Premier by Equinox, with i-80 taking all of Premier’s US-based assets. These assets include the South-Arturo and McCoy-Cove properties in Nevada, as well as the previously announced acquisition of the Getchell Project.

Premier Gold last traded at $3.09 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.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Nevada King Hits 3.35 g/t Gold Over 67.1 Metres

Nevada King Gold (TSXV: NKG) this morning reported further drill results from its Atlanta Mine...

Thursday, January 20, 2022, 08:22:27 AM

A Lot Of Money To Be Made At $1900 Gold – Spotlight Series feat Exploits Discovery Corp

Today on The Dive, we’re taking a break from the daily routine and bringing to...

Friday, November 13, 2020, 01:00:00 PM

Kingman Minerals Reports Second Sampling Results For Rosebud Gold Mine

Kingman Minerals (TSXV: KGS) this morning announced the second sampling results from its Rosebud Mine,...

Tuesday, May 19, 2020, 09:19:34 AM

$3300 GOLD: Every $100 Rise in Gold Means Pure Profit |  Ross Beaty – Equinox Gold

In this interview, Ross Beaty, Chairman of Equinox Gold (TSX: EQX), examines the current gold...

Monday, June 2, 2025, 01:32:00 PM

Sassy Resources To Dividend Out 8.8 Million Shares Of Gander Gold

Sassy Resources (CSE: SASY) this morning indicated that it intends to dividend out a portion...

Friday, October 15, 2021, 08:48:07 AM