RE:RE:RE:I sit here and think - Did Goldcorp screw us over ?marnesue wrote: No it wasn't Goldcorp it was Premier management. Can't believe people with they're experience in the mining industry would close such a deal without requiring a development commitment from Goldcorp. Goldcorp should have been required to spend X-amount of dollars over a limited time period in the development of the propery and penalties should have been spelled out if the requirements were not met. This is standard practice in the mining industry.
This deal goes back to 2006, and those standard practices were followed. Premier chipped in its Bonanza property, and Goldcorp chipped in its Rahill property, to form a 50/50 JV. They agreed to do $5 million in exploration in an immediate exploration program with Premier as operator. After that continuing exploration would be funded 50-50. Pretty standard stuff.
Goldcorp had an option to increase its stake to 51% by paying Premier $440k, which they exercised. That made them operator, and after the initial exploration program, not much has happened. I imagine Premier expected Goldcorp to be very interested to continue exploring the property because it is closer along that tram to the Red lake mine than the Cochenour property that they were developing at the far end of the tram. In hindsight, giving up control was a mistake, because Goldcorp can now sit and wait. I never did think much of Goldcorp's management.
Interestingly, that $440k payment for 1% values the whole project at $44 million.