Premier Gold has made a US$205 million offer to buy out Centerra Gold, its joint venture partner in developing a mine in northwestern Ontario, near Geraldton.
In a March 30 news release, the Thunder Bay-headquartered miner indicates there’s another company waiting in the wings to acquire Centerra’s 50 per cent interest in Greenstone Gold Mines (GGM).
GGM is a partnership company set up specifically to put the Hardrock gold project into production. Premier said this proposed company has the financial wherewithal to acquire Centerra’s ownership stake and advance Hardrock through the construction phase.
The proposed open-pit mine is located on Highway 11, immediately south of the town of Geraldton. It’s on the site of a past-producing underground gold operation.
The offer to Centerra consists of US$175 million cash and all of Centerra’s obligations under the partnership agreement, including a remaining earn-in obligation of US$30 Million. Premier is making the offer to avoid litigation with Centerra. The two companies clashed over whether the Hardrock Project had reached the “feasibility study” stage.