Premier Gold Mines Limited (PG.TO) announced that Goldcorp Inc.
(G.TO, GG) has notified Premier that it intends to exercise its
right to acquire a 51% interest in the Broulan Reef Project in Red
PG is down near 2% at $3.11. Goldcorp is down 1.5%.
On February 25th, Premier announced that it has signed an
agreement to acquire the Broulan Reef Project from Cypress
Development Corp. (CYP.V) and Skyharbour Resources Ltd. (SYH.V) in
exchange for a payment to the Vendors $1.75 million in cash, the
issuance of 160,000 common shares of Premier and the retention of a
0.5% net smelter royalty (
Goldcorp has provided notice of its intent to exercise its right
to participate in the Broulan Reef acquisition pursuant to the
terms of the Rahill-Bonanza Joint Venture Agreement between Premier
and Goldcorp, whereby Goldcorp has the 30 day right to acquire a
51% interest in lands situated within an area of influence
associated with the Joint Venture and will fund 51% of acquisition
costs. The closing of the acquisition is subject to standard
conditions, including regulatory and stock exchange approval.
The Broulan Reef Property is located adjacent to the south and
west of Goldcorp's Cochenour/Bruce Channel Deposit and adjacent to
the west of the Rahill Bonanza Joint Venture. The Rahill-Bonanza
Project is a joint venture located in the heart of the main Red
Lake 'Mine Trend' and is being explored with partner and operator
Red Lake Gold Mines Limited, an affiliate of Goldcorp. Tram
development through the Joint Venture and underground drilling are
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