Premier Gold Mines Announces Overnight Marketed Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

THUNDER BAY, Ontario, Feb. 11, 2020 (GLOBE NEWSWIRE) -- PREMIER GOLD MINES LIMITED ("Premier" or the “Company”) (TSX: PG) (OTCPK: PIRGF) is pleased to announce that it has launched a marketed overnight public offering of common shares seeking gross proceeds of approximately $33 million (the "Offering").

The Company has filed today a preliminary short form prospectus with regulatory authorities in all provinces of Canada, other than Quebec. The Offering will be conducted through a syndicate of underwriters led by CIBC Capital Markets and Sprott Capital Partners LP.

Under the Offering, the Company is seeking to sell 22,000,000 common shares (the "Offered Shares") at a price of $1.50 per Offered Share. The Company will grant the Underwriters an option to purchase additional Offered Shares on the same terms of the Offering for up to 15% of the common shares sold in the Offering to cover over-allotments, exercisable within 30 days of the date of closing of the Offering. Subject to completion of marketing, the Offering is expected to close on or about February 28, 2020 and is subject to Premier receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange. The closing of the Offering is also conditional upon the contemporaneous closing of the Orion Transaction (defined below).

The net proceeds of the Offering are expected to be used by the Company for the development, expansion and working capital requirements of the Mercedes and South Arturo mines and the McCoy-Cove project, and for general corporate and working capital purposes and may also be used to reduce indebtedness under Premier’s revolving term credit facility.

The Offered Shares will be offered by way of a short form prospectus in all of the provinces of Canada, except Quebec, and may also be offered by way of private placement in the United States.

Proposed Transaction with Orion

In conjunction with the equity offering, Premier and Orion Mine Finance Fund II LP, a limited partnership managed by Orion Mine Finance Management II Limited (collectively, "Orion") have entered into a non-binding letter of intent in respect of a financing package that includes(i) an amended and restated gold prepay credit agreement (the "Second Amended and Restated Gold Prepay Agreement"), amending and restating the existing amended and restated gold prepay credit agreement dated January 31, 2019 (the "Existing Prepay"), and (ii) an amended and restated offtake agreement (the "Second Amended and Restated Offtake Agreement"), amending and restating the amended and restated offtake agreement dated January 31, 2019 (the "Existing Offtake") (the Second Amended and Restated Gold Prepay Agreement and the Second Amended and Restated Offtake Agreement, collectively the "Orion Transaction").