Orion will acquire Centerra’s stake in Greenstone Gold Mines Partnership whose principal asset is the Hardrock Mine Project located in Ontario, Canada
Orion Mine Finance Group has agreed with Centerra Gold and Premier Gold Mines to acquire Centerra’s 50% stake the Greenstone Gold Mines Partnership in Canada.
Orion is acquiring the stake for $225m along with certain contingent payment obligations of about $75m. Premier will continue to hold the remaining 50% stake in the gold mine.
GGM’s principal asset is the Hardrock Mine Project located on the Trans-Canada Highway near Geraldton, Ontario, Canada. The project is claimed to be a highly significant large-scale, permitted, mine development opportunity in North America.
The project includes properties made up of several claim groups with a total strike length of over 105km along the district’s most prospective geological structures.
Premier president and CEO Ewan Downie said: “This transaction paves the way for the development of Premier’s flagship asset. We look forward to working with Orion, a long-standing supportive partner of Premier, in advancing the Hardrock Project on an expedited timeline.
“This new partnership will unlock the substantial value of one of North America’s most advanced, permitted and well-located, multi-million-ounce gold projects.”
Orion portfolio manager Istvan Zollei said: “Orion looks forward to being a partner in turning the Hardrock Project into Ontario’s next prominent mine. After years of successful exploration and development work, we believe the Greenstone Project has the potential to grow into a large, long-lived gold mining operation with multiple deposits.”
The transaction, subject to customary closing conditions including approval from the Toronto Stock Exchange, is expected to close in January 2021.
Upon the closing of the transaction, Orion aims to support a positive feasibility decision for the Hardrock project based on the feasibility study conducted last year.
CIBC Capital Markets is serving as financial advisor to Premier Gold Mines for the deal.