Premier to Acquire "High Grade" Mexican Opportunity
Shares Issued: 59,135,492
This proposed joint venture (JV) meshes well with Premier’s NW Ontario assets as:
- It is located within a proven (some 220,000 ounces of past production) gold district.
- Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces per ton (opt).
- The majority of district production occurred within 120 metres of surface, but remains open at depth.
- It has characteristics similar to the historic Mother Lode District of California.
El Alamo District’s gold production halted at its peak owing to technological and political circumstances early in the 20th century, thus presenting a unique opportunity to the JV today. The mineralization in the district is characterized by common visible gold hosted within narrow and near-vertical quartz veins associated with felsic intrusives.
Premier will earn an initial 50% interest in the project by:
- Making payment of 100,000 shares of free-trading Premier stock to SGMI.
- Completing US$1.5 million in exploration and property acquisitions within two years, including US$1 million within one year of signing the JV agreement.
- Reimbursing SGMI for all payments (~US$225,000) over a four-year period to the original vendor of the property.
In addition, Premier has secured the right to earn an additional 15% interest in the JV (for a total interest of 65%) by making a further cash payment of $500,000 to SGMI and conducting an additional US$4.0 million in exploration on the property. SGMI will be the initial operators of the project, however, Premier can take over as operator once it secures a greater than 50% interest in the project.
Ewan Downie emphasized “Premier is fully funded in 2007 to meet its obligations to the Santa Teresa Project as well as its commitments in
Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer 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 diverse property holdings that include several projects and deposits in Northwestern Ontario and a joint venture in
For further information, please contact:
Ewan Downie, President & CEO
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 projections.