Equinox to buy junior miner Premier Gold in all-stock deal worth $612-million Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account
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Equinox Gold Corp. Equinox is buying Premier Gold Mines Ltd. Premier in an all-stock takeover transaction worth about $612-million that should result in a stalled gold mining project in Ontario finally moving forward.
Like many transactions announced in the gold industry over the past few years, this one sees only a small premium being paid by the acquirer.
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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.
Equinox to buy Premier Gold in $480 million all-stock deal
Historic headframe at the Hardrock gold project in Ontario. (
Image courtesy of Premier Gold Mines.)
Canada’s Equinox Gold (TSX, NYSE: EQX) is buying Premier Gold Mines (TSX: PG), which will spin out its Nevada assets in a new US-focused gold miner to be called i-80 Gold Corp.
The all-stock deal, valued at C$612 million ($480m) hands Equinox Gold Premier’s 50% interest in the Hardrock project in Ontario, the Mercedes Mine in Mexico and the Hasaga and Rahill-Bonanza properties in Red Lake, Ontario.
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Orion to Acquire Centerra Gold’s 50% Interest in the Greenstone Gold Mines Partnership Centerra Gold Inc.; PREMIER GOLD MINES LIMITED Toronto, Ontario, CANADA
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.
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