TORONTO, June 12 /CNW/ - PREMIER GOLD MINES LTD (TSX:PG) ("Premier") is
pleased to announce that it has completed the sale of its interest in the
Pickle Crow Property to newly listed PC GOLD INC. (PKL:TSX) ("PC Gold").
As consideration for its interest in the Property, Premier received
$1.25 million in cash, 3.8 million shares of PC Gold, and 950,000 Warrants
exercisable to acquire one common share of PC Gold for a period of 24 months
from closing at a price of $1.40 per share. Premier's share ownership
represents 14.8% of the issued and outstanding common shares of PC Gold, and
the Warrants represent 40.0% of the issued and outstanding Warrants of PC
Gold. If its Warrants were to be exercised, Premier would beneficially own
approximately 17.8% of the Company's common shares on a partially diluted
In addition to the cash and share payments, Premier will retain a 0.5%
Net Smelter Royalty in the Pickle Crow Property that consists of 98 contiguous
patented mining claims covering a surveyed area of 1,582.9 hectares located
approximately 400 kilometres northwest of Thunder Bay, Ontario, near the
community of Pickle Lake. The Property is host to the high-grade, past
producing, Pickle Crow Gold Mine and includes a new nominal 225 tonne per day
pilot mill, related equipment and stockpiles.
The payments add to Premier's already strong balance sheet. Assuming the
current value of the PC Gold shares, Premier now has close to $20 million in
cash and investments.
Stephen McGibbon, P. Geo., Executive Vice-President and COO of Premier,
is the Qualified Person for the information contained in this press release
and is a Qualified Person within the meaning of National Instrument 43-101.
Premier Gold Mines Limited is a Canadian-based mineral exploration and
development company with a strong treasury and has diverse property holdings
that include several projects and deposits in Northwestern Ontario and a joint
venture in Mexico.
The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual events
or results could differ materially from the Company's expectations and
For further information:
For further information: Ewan Downie, President & CEO , Phone: (807)
346-1390, Fax: (807) 346-0100, E-mail: email@example.com, Web Site: