Orion and Centerra close Hardrock sale

Hardrock mine project. (Image courtesy of Premier Gold).

Premier Gold Mines (TSX: PG) announced that the transaction whereby Centerra Gold will sell its 50% interest in the Greenstone Gold Mines Partnership to an affiliate of Orion Mine Finance Group has been completed. Premier owns the other 50% interest of GGM.

Centerra received an up-front cash payment of approximately $210 million and is entitled to receive further contingent payments of up to approximately $75 million (assuming a $1,500 gold price) upon GGM’s Hardrock Mine project meeting certain construction or production milestones.

GGM’s principal asset is the Hardrock project near Geraldton, Ontario, Canada and represents one of the most significant large-scale, permitted, mine development opportunities in North America, Premier said.

All parties to the previously announced Hardrock Project legal actions and related counterclaims, as well as Premier and Centerra, have provided a mutual release and consent dismissal in respect of the action and the related counterclaims.