Premier Gold Mines Ltd. has completed the acquisition of Yamana Gold’s Mercedes Mine in Mexico and signed option agreements with Kinross Gold and a Goldcorp subsidiary to earn an interest in two other projects.
Pursuant to a share purchase agreement dated July 28, Premier has acquired all of the shares of Yamana’s wholly-owned Mexican subsidiaries, which own a 100 per cent interest in the Mercedes Mine, for $125.5 million in cash and stock.
The option agreement with Kinross requires Premier to spend $20 million on exploration over five years to earn a 50 per cent interest in the Goldbar project in Nevada, while the agreement with Alta Pimeria allows the Thunder Bay-based company to acquire up to 100 per cent of the Alta Cristina project in Mexico in return for payments totalling $7 million.
Premier has a pipeline of gold projects in Canada, the United States and Mexico. Anticipated gold production in excess of 100,000 oz. during the final quarter of 2016 will come from its interest in the South Arturo mine in Nevada and the recently acquired Mercedes Mine in Mexico.
