Gold producer
Premier Gold Mines Limited (TSX: PG) announced on Monday that it had made an offer to acquire half a stake in
the Greenstone Gold Mines Partnership held by
Centerra Gold Inc. (TSX: CG) worth $205 million (USD).
The principal asset under the Greenstone Gold Mines Partnership is the Hardrock Mine Project. Located on the Trans-Canada Highway near Geraldton, Ontario, it is one of the most significant large-scale, near permitted, mine development projects in North America.
This proposal includes $175 million in cash, along with the assumption of all Centerra’s obligations under the partnership agreement. This includes the remaining earn-in obligation of $30 million. An unnamed assignee to the deal also intends to work with Premier to help secure financial resources required to fund its 50% share of related mine construction costs.