Orion to Acquire Centerra Gold’s 50% Interest in the Greenstone Gold Mines Partnership

Nachrichtenquelle: globenewswire
16.12.2020, 00:30  |  182   |   |   

THUNDER BAY, Ontario and TORONTO, Dec. 15, 2020 (GLOBE NEWSWIRE) -- PREMIER GOLD MINES LIMITED (“Premier”) (TSX:PG) (OTCPK: PIRGF) and CENTERRA GOLD INC. ("Centerra") (TSX: CG) are pleased to announce that an affiliate of the Orion Mine Finance Group (“Orion”), has entered into an agreement (the “Purchase Agreement”) with Centerra and Premier pursuant to which Orion will acquire Centerra's 50% interest in the Greenstone Gold Mines Partnership (“GGM”) for cash consideration of US$225 million (subject to certain adjustments) plus certain contingent payment obligations of approximately US$75 million (assuming a US$1,500 gold price), described below (the "Transaction"). Premier currently owns the other 50% of GGM.

GGM’s principal asset is the Hardrock Mine Project (“Hardrock” or the “Project”) located on the Trans-Canada Highway near Geraldton, Ontario, Canada and represents one of the most significant large-scale, permitted, mine development opportunities in North America.

Consideration under the Purchase Agreement is comprised of:

  • payment on closing from Orion to Centerra in the amount of approximately US$225 million (subject to certain adjustments); and
  • contingent payments due from Orion to Centerra, payable under certain circumstances, as follows (the "Contingent Payments"):

(i)  US$25 million in cash, payable within 24 months following a positive mine construction decision by GGM with respect to the Project;

(ii)  within 30 days of the Project achieving cumulative production of 250,000 ounces of refined gold, Orion shall deliver to Centerra, at Orion's option, either: (A) 11,111 ounces of refined gold; (B) the cash equivalent value of 11,111 ounces of refined gold, based on the 20-day average spot gold price ending on the date immediately prior to the date of payment; or (C) a combination of refined gold and a cash equivalent of the shortfall ounces of refined gold;

(iii)  within 30 days of the Project achieving cumulative production of 500,000 ounces of refined gold, Orion shall deliver to Centerra at Orion's option, either: (A) 11,111 ounces of refined gold; (B) the cash equivalent value of 11,111 ounces of refined gold, based on the 20-day average spot gold price ending on the date immediately prior to the date of payment; or (C) a combination of refined gold and a cash equivalent of the shortfall ounces of refined gold; and

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Orion to Acquire Centerra Gold’s 50% Interest in the Greenstone Gold Mines Partnership THUNDER BAY, Ontario and TORONTO, Dec. 15, 2020 (GLOBE NEWSWIRE) - PREMIER GOLD MINES LIMITED (“Premier”) (TSX:PG) (OTCPK: PIRGF) and CENTERRA GOLD INC. ("Centerra") (TSX: CG) are pleased to announce that an affiliate of the Orion Mine Finance …

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