Premium Exploration Enters Into Merger Agreement With Clearwater Mining Corporation

Premium Exploration Inc. (TSX VENTURE:PEM) announced that its wholly-owned subsidiary, Premium Exploration USA, Inc. has executed an Agreement and Plan of Merger with Clearwater Mining Corporation dated effective June 17, 2010.

The press release is quoted as saying:

Under the Agreement, in exchange for agreeing to merge Clearwater into Premium USA, the shareholders of Clearwater will receive an aggregate total of 3,000,000 common shares of the Company (subject to a 4-month hold period) along with a 1% Net Smelter Returns royalty (“NSR”) on the Friday-Petsite Project. The NSR is payable quarterly on commencement of commercial production of gold from the Friday-Petsite Project up to a total of US$3,000,000 in royalty payments. No finder’s fees are payable for this merger.

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