Orion to pay $225m for 50% interest in Greenstone Gold Mines

Work at the Greenstone gold property. (Image courtesy of Premier Gold Mines).

Premier Gold Mines (TSX: PG) and Centerra Gold (TSX: CG) entered into an agreement with an affiliate of the Orion Mine Finance Group pursuant to which Orion will acquire Centerra’s 50% interest in the Greenstone Gold Mines Partnership for cash consideration of $225 million plus certain contingent payment obligations of approximately $75 million. 

Premier currently owns the other 50% of GGM. Meanwhile, affiliates of Orion beneficially own or control approximately 13.9% of the outstanding common shares of Premier and, as such, Orion is considered a “related party” and an “insider” of Premier for the purposes of applicable securities laws and stock exchange rules. 

The Greenstone Gold Mines Partnership is currently developing its flagship Hardrock mine project, located within the Greenstone gold property near the town of Geraldton in Ontario, eastern Canada. 

As of 2019, it was estimated that the Hardrock open-pit deposit hosted 68.85 million tonnes at 1.33 g/t Au in measured and indicated resources, while the Hardrock underground deposit was estimated to host 4.90 million tonnes at 3.93 g/t Au in measured and indicated resources.

“Orion looks forward to being a partner in turning the Hardrock project into Ontario’s next prominent mine,” the firm’s portfolio manager, Istvan Zollei, said in a media statement. “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.”

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