Pure Gold Mining to Sell Non-Core Assets to Premier Gold

Pure Gold Mining (TSXV:PGM) announced an agreement to sell some of its non-core claims to Premier Gold (TSX:PG) for $5 million plus a one percent NSR. The claims are contiguous with Premier’s Hasaga property.
As quoted in the press release:

Total consideration payable to Pure Gold will consist of:

1. Cash consideration of $2,500,000 payable upon closing;
2. Share consideration totaling $2,500,000 based on the 20 day VWAP of Premier Gold preceding closing;
3. A 1% NSR on the majority of the Buffalo Claims divested. Premier Gold will have the right to acquire 50% of the NSR for consideration of $1,000,000.

The sale is expected to close on or before December 18, 2015 and is subject to certain conditions including, but not limited to, the completion of definitive documentation and receipt of all necessary approvals, including the approval of the TSX-V. All common shares of Premier Gold received in connection with the sale will be subject to a hold period in Canada of four months and one day from the date of issuance.
Macquarie Capital Markets Canada Ltd. is acting as financial advisor to Pure Gold with regard to the sale.

Pure Gold President and CEO, Darin Labrenz, said:

In our view, this transaction is a logical step for both companies. It will provide Pure Gold with immediate cash and share consideration without diluting shareholders equity, which will continue to allow the Company to devote funds to our highly prospective Madsen Gold Project. The sale also provides Pure Gold with continued exposure to the Buffalo Claims via the NSR.

Click here for the full press release.