Goldcorp will receive $20 million in cash from Premier Gold Mines in exchange for its 40% stake in the Nevada-based South Arturo Mine Project, an advanced exploration project.
Goldcorp will put some of the money towards a private placement with Premier, C$12.5 million. Goldcorp (NYSE:GG) will also receive a 5% interest in the Rahill-Bonanza Joint Venture in Red Lake.
After the news, Premier Gold Mines (TSE:PG) was mostly flat, up 0.39% to $2.55. Goldcorp was up 3.02% to $19.42.
Barrick Gold is 60% owner and operator of the South Arturo Mine Project.
Located 65km NW of Elko, South Arturo is a gold (carlin type) deposit with additional occurrences of silver.
Map from IntelligenceMine
Comments
LAMB
What will PREMIER GOLD do with this mine? They are only interested in EXPLORATION and have no Operations experience. They recently sold the Northern Empire Mine near Beardmore because they did not know what to do with it – a mine that had old underground workings, a shaft and recent drill indications that the gold veins extended beyond the old workings.
From what I have seen, Premier is only interested in driving up the price of it’s stock and loves the headlines like this.