(Kitco News) – Premier Gold Mines (TSX:PG) and Centerra Gold (TSX: CG) announced yesterday that companies have entered into an agreement with an affiliate of the Orion Mine Finance Group (“Orion”), pursuant to which Orion will acquire Centerra’s 50% interest in the Greenstone Gold Mines Partnership (“GGM”) for cash consideration of US$225 million (subject to certain adjustments) plus certain contingent payment obligations of approximately US$75 million (assuming a US$1,500 gold price).
Premier currently owns the other 50% of GGM.
GGM’s principal asset is the Hardrock mine project, located on the Trans-Canada Highway near Geraldton, Ontario, Canada and represents one of the most significant large-scale, permitted, mine development opportunities in North America.
The Hardrock deposit contains 5,707 koz of gold in Measured, Indicated and Inferred Resource categories (inclusive of Reserves). Probable Reserves amounted to 2,324 koz of gold.
The transaction is expected to close in January 2021.
“This transaction paves the way for the development of Premier’s flagship asset. We look forward to working with Orion, a long-standing supportive partner of Premier, in advancing the Hardrock project on an expedited timeline,” stated President and CEO of Premier Ewan Downie.
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