THUNDER BAY — Thunder Bay-based Premier Gold Mines says Centerra Gold has turned down Premier's offer to acquire its 50 per cent interest in their Greenstone Gold Mines partnership.
The two companies are currently engaged in a legal dispute.
In March, Premier said it was prepared to pay $US 205 million for Centerra's share of Greenstone, whose principal asset is the Hardrock Project on Highway 11 on the outskirts of Geraldton.
Centerra did not respond to requests for comment at the time the offer was made.
However, Premier CEO Ewan Downie says its decision not to accept the 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."
In late 2019, Centerra filed a court claim against Premier, seeking a declaration that the 2019 Hardrock Project Update submitted by Greenstone Gold should not be considered a "feasibility study" as defined in their partnership agreement.
Premier has said the update included an independent feasibility study that forecasts a rate of return from the project which satisfies the partners' criteria for proceeding with development.
When it made the buyout offer in March, Premier said it was submitted in cooperation and with the support of an unnamed company which "has the financial capacity to both acquire Centerra's 50 per cent interest and advance Hardrock through construction."
