Premier Gold Acquires GGM

Premier Gold Mines Limited confirms an offer to acquire the remaining 50% interest in the Greenstone Gold Mines Partnership (GGM) has been made to Centerra Gold. Total consideration of the offer is approximately US$205 Million. The acquiring party, at the option of Premier, will be another company that is an assignee of Premier's rights under the offer letter.

 

GGM’s principal asset is the Hardrock Mine Project located on the Trans-Canada Highway near Geraldton, Ontario, Canada. Hardrock is one of the most significant large-scale, near permitted, mine development projects in North America.

 

The offer is comprised of a cash payment in the amount of US$175 Million, and in addition the assumption of all Centerra's obligations under the partnership agreement, including the remaining earn-in obligation of approximately US$30 Million.

 

“This offer should be viewed favourably by Centerra as we believe that it represents a substantial premium to the median of current analyst consensus valuations attributed to Centerra’s 50% interest in GGM, full recovery of their total investment in GGM to date, and aligns with Centerra’s stated focus of maximizing the value of its existing operating assets over new build opportunities”, stated Ewan Downie, President and CEO of Premier.

 

“The value of the offer is in excess of Premier’s market capitalization, especially when you consider the Company’s considerable cash position” added more.

 

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