Sage Gold Inc. (
TSX: V.SGX,
Stock Forum) has executed a non-binding letter of intent with
Premier Gold Mines Ltd. (
TSX: T.PG,
Stock Forum) to purchase the Northern Empire Mill, mine and other exploration properties from Premier in Ontario.
“The proposed transaction represents a significant milestone for Sage and will place the company in a very strong strategic position in the historic Beardmore Geraldton gold camp,’’ said Sage Gold President and
CEO Nigel Lees in a press release.
Upon closing, Sage will double its land position in this camp to approximately 15, 578 hectares and add historic gold resources to its portfolio.
Sage shares jumped 25% to 2.5 cents on Friday, leaving a market cap of $3.3 million, based on 130.4 million shares outstanding. The 52-week range is 4 cents and 1 cent.