Premier Gold Mines has made an offer to acquire Centerra Gold’s 50 percent stake in the Greenstone Gold Mines Partnership for US$205 million.
Premier Gold Mines (TSX:PG,OTC Pink:PIRGF) announced that it has made an offer to acquire Centerra Gold’s (TSX:CG,OTC Pink:CAGDF) 50 percent stake in the Greenstone Gold Mines Partnership (GGM) for total consideration of US$205 million.
As quoted in the press release:
GGM’s principal asset is the Hardrock Mine Project (“Hardrock”) located on the Trans-Canada Highway near Geraldton, Ontario, Canada. Hardrock is one of the most significant large-scale, near permitted, mine development projects in North America.
The offer is comprised of a cash payment in the amount of US$175 Million, and in addition the assumption of all Centerra’s obligations under the partnership agreement, including the remaining earn-in obligation of approximately US$30 Million.
Ewan Downie, president and CEO of Premier, commented:
This offer should be viewed favourably by Centerra as we believe that it represents a substantial premium to the median of current analyst consensus valuations attributed to Centerra’s 50% interest in GGM, full recovery of their total investment in GGM to date, and aligns with Centerra’s stated focus of maximizing the value of its existing operating assets over new build opportunities. The value of the offer is in excess of Premier’s market capitalization, especially when you consider the Company’s considerable cash position.