Premier Gold Mines says Centerra not accepting $205M offer for Greenstone stake | iNFOnews | Thompson-Okanagan's News Source

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Premier Gold Mines says Centerra not accepting $205M offer for Greenstone stake

FILE - In this Tuesday, July 22, 2014, file photo, gold bars are stacked in a vault at the United States Mint, in West Point, N.Y. Premier Gold Mines Ltd. says an offer it made to buy Centerra Gold Inc.'s 50 per cent stake in the Greenstone Gold Mines Partnership for US$205 million has not been accepted. THE CANADIAN PRESS/AP-Mike Groll
April 09, 2020 - 11:35 AM

THUNDER BAY, Ont. - Premier Gold Mines Ltd. says an offer made in March to buy Centerra Gold Inc.'s 50-per-cent stake in the Greenstone Gold Mines Partnership for US$205 million has not been accepted.

Greenstone's principal asset is the proposed Hardrock Mine project near Geraldton, Ont.

Premier, which holds the other 50 per cent stake in the project, had said an unnamed third party would be the actual buyer of the ownership stake, at Premier's option.

Late last year, Centerra launched a lawsuit against Premier over the validity of a mineral resource estimate that suggested development should proceed on the Greenstone property. Premier said it filed a counterclaim in February.

Premier CEO Ewan Downie says Centerra's decision to not accept the buyout offer suggests it sees value in the stake and is inconsistent with its refusal to make a "positive feasibility decision" on the project.

The proposed purchase price was to include US$175 million in cash and the assumption of all of Centerra's obligations under the partnership agreement, including the remaining earn-in obligation of US$30 million.

This report by The Canadian Press was first published April 9, 2020.

Companies in this story: (TSX:PG, TSX:CG)

News from © The Canadian Press, 2020
The Canadian Press

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