Premier Gold Mines has announced that Centerra Gold has turned down the company’s $205m offer to acquire the remaining 50% stake in the Greenstone Gold Mines Partnership (GGM) which is held by Centerra.
Greenstone’s main asset is the Hardrock mine project in Ontario, Canada.
Located on the Trans-Canada Highway near Geraldton, Hardrock is a large-scale, near permitted, mine development project.
Premier president and CEO Ewan Downie said: “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.”
The offer had consisted of $175m in cash and the assumption of all Centerra’s obligations under the partnership agreement, including the remaining earn-in obligation of nearly $30m.
Premier had submitted the offer in March in cooperation with third party firm
Premier had submitted the offer in March, which was in collaboration with the support of a third party company (assignee) which has the financial capacity to both acquire Centerra’s interest and advance Hardrock through construction.
After launching the bid, Downie had said: “This offer should be viewed favourably by Centerra as we believe that it represents a substantial premium to the median of current analyst consensus valuations attributed to Centerra’s 50% interest in GGM, full recovery of their total investment in GGM to date, and aligns with Centerra’s stated focus of maximising the value of its existing operating assets over new build opportunities.
“The value of the offer is in excess of Premier’s market capitalisation, especially when you consider the Company’s considerable cash position.”
Premier Gold Mines is a gold producer and exploration firm with operations and properties in Canada, the US, and Mexico.
