Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Premier Gold (TSX: PG) announced on Wednesday that Centerra (TSX: CG) has not accepted the company’s offer to acquire Centerra’s 50% interest in the Greenstone Gold Mines Partnership for approximately $205 million.
Greenstone’s principal asset is the Hardrock project located on the Trans-Canada Highway in Ontario. It is considered one of the most significant large-scale, near permitted, mine development opportunities in North America, Premier said in a media release.
“Centerra’s decision not to accept our offer confirms that Centerra recognizes the substantial value of the Hardrock project and is inconsistent with its refusal to make a positive feasibility decision in connection with the project,” said Premier chief executive Ewan Downie.
Hardrock has been a contentious project for both Premier and Centerra, with the latter filing a lawsuit over a project update made in December by Greenstone Gold Mines, which Centerra argued should not be considered a “feasibility study”, and Premier filing a counterclaim earlier this year in response.
