Premier announces closing of Gualcamayo Gold Mine The royalty purchase from Gualcamayo is finally through. I would not expect a major upmove though, as it is already priced in.
https://finance.yahoo.com/news/premier-announces-closing-gualcamayo-gold-110000288.html
THUNDER BAY, ON, Nov. 12, 2012 /CNW/ - PREMIER GOLD MINES LIMITED (PG:TSX) ("Premier Gold" or the "Company") is pleased to announce the closing of the purchase by its wholly-owned subsidiary, Premier Royalty Corporation ("Premier Royalty") from Golden Arrow Resources Corporation (" Golden Arrow "), of a 1% net smelter return royalty (the "Royalty") on gold produced from Yamana Gold Inc.'s Gualcamayo Gold Mine in Argentina.
Premier Royalty purchased 100% of the shares of Golden Arrow's wholly-owned subsidiary, which indirectly owns the Royalty, for cash consideration of $16,500,000 and warrants to purchase an aggregate of up to 1 million shares of Premier Royalty at an exercise price equal to 120% of the price of Premier Royalty's shares in connection with an initial public offering or similar going public transaction. The warrants are exercisable for a period of 24 months from the closing date of the Royalty acquisition. Golden Arrow has the right, on 30 days' prior written notice, to require Premier Royalty to purchase for cancellation all outstanding warrants for a price of $1.25 per warrant prior to their expiry.
The Gualcamayo mine is an open pit, heap leach gold mining operation with three substantial zones of gold mineralization, located in the northern San Juan province of Argentina , which hosts total proven & probable mineral reserves of 58.9 million tonnes (Mt) at 1.16 grams per tonne gold (g/t Au) amounting to approximately 2.2 million ounces and total measured & indicated mineral resources of 10. 3 Mt at 1.90 g/t Au amounting to approximately 1.1 million ounces as at December 31, 2011 . Gualcamayo has consistently improved its production versus guidance since 2011. According to Yamana Gold Inc.'s public disclosure, the decision was made in 2010 to develop the underground QDD Lower West deposit, located below the main open pit, which is expected to increase annual production to over 200,000 ounces per year beginning in 2014.
Abraham Drost , President & Chief Executive Officer of Premier Royalty stated, "We thank Golden Arrow and are very pleased to close on the Gualcamayo royalty transaction. This acquisition adds a high quality cash-flowing royalty on a remarkable gold mine owned and operated by Yamana. Premier Royalty's portfolio will consist of five cash flowing royalties (Emigrant Springs - Newmont, Thunder Creek - Lake Shore Gold, Buffelsfontein - Village Main Reef, Mine Waste Solutions - AngloGold Ashanti and Gualcamayo - Yamana) and a number of promising earlier stage exploration royalties. We are also assessing other potential royalty acquisitions and corporate development opportunities and look forward to the consummation of the Bridgeport transaction and a continuing pattern of sustainable growth."
Information in this press release describing the Gualcamayo Gold Mine relies upon public disclosure provided by Yamana Gold Inc. and has been reviewed by Mr. Stephen McGibbon , P. Geo, who is a Qualified Person within the meaning of National Instrument 43-101. For more information on the Gualcamayo Gold Mine, please refer to the "Technical Report for Gualcamayo Project, San Juan - Argentina " dated March 25, 2011 which can be found on Yamana Gold Inc.'s profile on www.sedar.com.