Shares Issued: 159,137,353
THUNDER BAY, ON, June 2, 2015 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier", "the Company") is pleased to announce that it has completed its acquisition of Goldcorp Inc.'s ("Goldcorp") 40% interest in the South Arturo Mine Project (the "Acquisition"), located 8 kilometres northwest and along strike from Barrick Gold Corporation's Goldstrike Operations, within the Carlin Trend in Nevada.
Pursuant to the terms of the Acquisition, Premier has paid US$20 Million, has transferred to Goldcorp 5% of its interest in the Rahill-Bonanza Joint Venture in Red Lake and has granted Goldcorp a right of first refusal for a period of three years on any proposed sale or joint venture transaction by Premier of Premier's McCoy-Cove project located in Nevada.
In connection with the Acquisition, Premier also reimbursed Goldcorp US$16.6 million for costs and contributions paid by Goldcorp with respect to the South Arturo Mine Project since March 16, 2015. Goldcorp has agreed to contribute $12.5 million to Premier in a financing to be completed within the one month period commencing on the closing date of the Acquisition.
Premier Gold Mines Limited is one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is well financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends in Nevada.
This Press Release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the expected benefits of the Acquisition, the timing and amount of expected participation of Goldcorp in a future financing of Premier, strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Premier Gold Mines Limited
For further information: Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-1381, e-mail: [email protected], Web Site: www.premiergoldmines.com