Getchell project is located at the intersection of the Getchell gold belt and the Battle Mountain-Eureka trend, near Winnemucca, Nevada
Premier Gold Mines, along with its Delaware subsidiary Premier Gold Mines USA (PG USA) has signed a purchase agreement Waterton Global Resource Management, to acquire 100% interests in Osgood Mining, for a consideration of $50m.
Osgood Mining owns Getchell project, which is located at the intersection of the Getchell gold belt and the Battle Mountain-Eureka trend immediately south of Nevada Gold Mines’ Turquoise Ridge operation, near Winnemucca, Nevada.
The property, which the mine has been under care and maintenance since 2015, witnessed open pit mining between 1980 and 1999, followed by underground test mining in the early 2010s.
Premier president and CEO Ewan Downie said: “We are very excited to add the Getchell Project to our already strong base of Nevada assets.
“The property has a long track record of successful gold production and we believe that the open pit and underground gold historical resources at Getchell were amongst the highest-grade in North America based on historical work completed on the property and the property will form an integral part of our US-based activities.”
The transaction makes Getchell a 100% owned property of PG USA
With the completion of the transaction, Getchell will become a 100% owned property of PG USA and one of its core Nevada assets. An anticipated corporate reorganisation is expected to result in spinning-out of PG to Premier’s shareholders.
If the company wishes to proceed with a spin-out transaction of PG USA, the consideration value will be adjusted according to the terms of the agreement.
The completion of transaction is subject to various conditions, including the obtaining certain regulatory and third-party approvals, including the approval of the Toronto Stock Exchange, and other conditions customary for a transaction of this nature.
The acquisition is is expected to be completed in the fourth quarter 2020.