THUNDER BAY, ON - PREMIER GOLD MINES LIMITED (TSX:PG) announces that it has closed, including a 20% over-allottment, a fully subscribed, non-brokered private placement for 7,800,096 flow through shares (the “Flow-Through Shares”) at a price of $1.80 per Flow-Through Share for aggregate gross proceeds of C$14,040,180.
The Company shall, pursuant to the provisions in the Income Tax Act (Canada), incur Canadian Exploration Expenses (the “Qualifying Expenditures”) for the issue of the Flow-Through Shares and prior to December 31, 2009 in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares. The Company shall renounce the Qualifying Expenditures so incurred to the purchasers of the Flow-Through Shares such that C$1.80 per Flow-Through Share shall be deductible against the income of the Flow-Through Share subscribers for the fiscal year ended December 31, 2008. “This financing augments our already strong balance sheet and positions Premier to be among Canada’s most active companies in 2009, with one of the industry’s largest exploration budgets” states Ewan Downie, President and Chief Executive Officer. “We expect to complete more than 50,000 metres of drilling on our three projects strategically located in the heart of major Ontario gold mining camps.”
Premier Gold Mines Limited is a well financed Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two of these are operated in joint venture with Red Lake Gold Mines. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and recently signed an agreement to acquire mineral properties in the Geraldton area from Barrick Gold.