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UPDATE: Premier Gold Down 2% As Announces Goldcorp Participation in Red Lake Project; CYP.V and SYH.V Both Also Involved

By: MT Newswires
Posted: 2/27/2013 9:53:00 AM
Referenced Stocks: NSR

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 Lake.

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 ( NSR ).

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 underway.