Premier Gold Mines Ltd. (TSX: T.PG, Stock Forum) said that Goldcorp Inc. (TSX: T.G, Stock Forum) intends to exercise its right to acquire a 51% interest in the Broulan Reef Project in Red Lake.
On Feb. 25, Premier announced that it has signed an agreement to acquire the Broulan Reef Project from Cypress Development Corp. (TSX: V.CYP, Stock Forum) and Skyharbour Resources Ltd. (TSX: V.SYH, Stock Forum) for $1.75 million in cash, the issuance of 160,000 common shares of Premier and the retention of a 0.5% net smelter royalty (NSR).
According to the Premier Gold Mines press release, Goldcorp has provided notice of its intent to exercise its right to participate in the Broulan Reef acquisition pursuant to the terms of the Rahill-Bonanza joint venture agreement between Premier and Goldcorp, whereby Goldcorp has the 30 day right to acquire a 51% interest in lands situated within an area of influence associated with the joint venture and will fund 51% of acquisition costs.
The Rahill-Bonanza Project is a joint venture located in the heart of the main Red Lake "Mine Trend", located in Eastern Canada.
The closing of the acquisition is subject to standard conditions, including regulatory and stock exchange approval.
Premier is a leading exploration company with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States.
On Wednesday, Premier was up 0.32% and was trading at $3.18 a share. The company has a market cap of $473.9 million, based on 149.2 million shares outstanding. The 52-week high and low was $6.79 and $2.76 respectively.