THUNDER BAY — Thunder Bay-based Premier Gold Mines has announced an offer to acquire the 50 per cent interest in a Geraldton-area gold project held by its partner in the project, Centerra Gold.
The two companies are equal partners in Greenstone Gold Mines, which is developing the Hardrock mine project just outside Geraldton.
However, 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 that satisfies the partners' criteria for proceeding with development.
In an announcement Monday, Premier said Centerra is being offered US$205 million for its interest in the project.
"The acquiring party, at the option of Premier, will be another company that is an assignee of Premier's rights under the offer letter," the announcement stated.
It said Premier has submitted the offer 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."
Work on the project began 12 years ago.
