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 basis.
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.