Premier Gold Mines Limited (TSX-PG) is pleased to announce that Centerra Gold Inc. (“Centerra”) will make an additional capital contribution (the “Centerra Contingent Contribution”) in cash to the Greenstone Gold Mines LP (formerly the Trans-Canada Partnership) in the amount of $11,009,680.
This contribution, which will be distributed to Premier as a capital distribution from the Partnership, is in connection with a key term of the 50/50 Partnership agreement signed earlier this year between Premier and Centerra for the joint ownership and development of the Trans-Canada Property.
“Receipt of this payment from Centerra will bolster Premier’s already strong financial position” stated Ewan Downie, President and CEO of Premier.“With our treasury we are in the unique position to fully fund active exploration and development programs at five company projects, including the South Arturo Gold Mine in Nevada where production is slated to commence early in 2016”.
Greenstone Gold Mines LP, the corporation formed to advance the Trans-Canada Property on behalf of the 50/50 Partnership is in the final stages of completing work related to an upcoming Feasibility Study related to the Hardrock open pit mine project.
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 approximately $80 million in cash and investments (prior to the contingency payment) and has 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.