Canada-based Premier Gold Mines has acquired the Broulan Reef project from Cypress Development and Skyharbour Resources for $1.75m.
In addition to the cash payment, Premier is also liable to issue 160,000 common shares along with the retention of a 0.5% net smelter royalty.
The company’s Rahill-Bonanza joint venture Agreement with Goldcorp provides the latter with 30 day right to acquire 51% stake in the project by funding 51% of acquisition costs.
Commenting on the acquisition Premier president and CEO Ewan Downie said: "Over the past several years, our strong treasury has allowed Premier to capitalize on weak market conditions and acquire strategic property packages in several of North America’s most prolific gold camps."
Broulan Reef project is located adjacent to Goldcorp’s Bruce Channel deposit and the Rahill-Bonanza joint venture.
The Rahill-Bonanza project is a located in the middle of the Red Lake mine trend and is being explored with its partner and operator Red Lake Gold Mines Limited, a subsidiary of Goldcorp.