Premier Gold Mines Acquires Cove-McCoy Property

Premier Gold Mines Ltd. (TSX:PG) announced it has closed the acquisition of a 100-percent interest in the Cove-McCoy gold property, in Nevada, from Newmont Mining Corp. (NYSE:NEM). Premier paid $15 million for the property.

According to the press release, the acquisition includes:

• 100% interest in the consolidated Cove-McCoy Property package (now totaling 31,000 acres or 48 square miles) in the heart of one of the world’s most productive gold districts.
• Elimination of ‘back-in’ rights previously held by Newmont as well as a revision of the royalty terms held by Newmont from a “potential” 5.0% Net Smelter Royalty (NSR) to a 1.5% NSR.
• The potential to define near-surface heap leachable mineralization at McCoy that could be prioritized towards development.
• Existing infrastructure, including lined heap leach pads that could potentially be utilized under a renewed development scenario.
• A ‘good faith efforts’ processing arrangement with Newmont over a 10-year period within a 12-year window for ores mined at Cove-McCoy.
• Premier will retain a 1.5% NSR in the South Carlin Property interests.

Ewan Downie, president and CEO of Premier, said:

The Cove-McCoy district remains a highly underexplored property package in a region known for hosting multi-million ounce gold deposits. This important acquisition secures for Premier a 100% interest in a property that offers the potential to define both open pit and underground mineralization.

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