Premier Gold Acquires Goldcorp’s Interest in South Arturo Mine Project in Nevada

Premier Gold Mines Ltd. (TSX:PG) announced it has entered into an agreement to acquire Goldcorp Inc.’s (TSX:G,NYSE:GG) 40 percent interest in the South Arturo Mine project in Nevada. The project is located 8 kilometers northwest and along strike from Barrick Gold Corporation’s (TSX:ABX,NYSE:ABX) Goldstrike operations within the Carlin Trend.

As quoted in the press release:

Pursuant to the terms of the transaction, Premier has agreed to pay Goldcorp US$20 million at closing and transfer to Goldcorp 5 percent of its interest in the Rahill-Bonanza Joint Venture in Red Lake, subject to Barrick not exercising its right of first refusal in respect of the Project and completion of definitive documentation. Concurrent with the acquisition, Goldcorp has agreed to complete a private placement with Premier in the amount of Cdn$12.5 million, subject to Toronto Stock Exchange approval. In the event that Barrick exercises its right of first refusal in the Project, Goldcorp has agreed to pay Premier a break fee in the amount which is the greater of (i) 5 percent of the purchase price paid by Barrick to Goldcorp as consideration for Goldcorp’s 40 percent interest in the Project, and (ii) US$1.1 million.

Key benefits to Premier include:

• Reasonable gold purchase price for total resource ounces being acquired at South Arturo
• The Phase 2 open pit mine project is fully-permitted and in construction.
• Project is operated by Barrick Gold, a highly professional and established operator in Nevada with substantial milling infrastructure.
• Upside could be realized through further exploration drilling for potential underground resources.
• Meets Premier’s criteria of establishing an exploration and development project portfolio within world class districts and safe mining jurisdictions.
• The partnership model has been an important part of Premier’s past and recent successes

Click here to read the full Premier Gold Mines Ltd. (TSX:PG) press release.