Offer made to Centerra Gold for its stake in Ontario gold project | iNFOnews | Thompson-Okanagan's News Source

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Offer made to Centerra Gold for its stake in Ontario gold project

In this July 22, 2014, file photo, gold bars are stacked in a vault at the United States Mint, in West Point, N.Y. THECANADIAN PRESS/AP/Mike Groll, File
March 30, 2020 - 5:07 AM

THUNDER BAY, Ont. - Premier Gold Mines Ltd. says an offer has been made to acquire Centerra Gold Inc.'s 50 per cent stake in the Greenstone Gold Mines Partnership in a deal it says it worth US$205 million.

The partnership's principal asset is the Hardrock Mine project near Geraldton, Ont.

Premier, which holds the other 50 per cent stake in the project, says the acquirer is a third party that is an assignee of Premier's rights under the offer letter.

Premier did not identify the company, but said it has the financial capacity to both acquire Centerra's interest and advance the mine through construction.

It also says the assignee plans to work with Premier to help in securing the money to fund its share of the mine construction costs.

The proposal includes US$175 million in cash and the assumption of all 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 March 30, 2020.

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

News from © The Canadian Press, 2020
The Canadian Press

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