Premier Gold Mines Ltd. recently completed the acquisition of Yamana Gold’s Mercedes mine, located some 60 km southeast of Magdalena de Kino, in Mexico’s Sonora State.
Pursuant to a share purchase agreement dated July 28, Premier has acquired all of the shares of Yamana’s indirect wholly-owned Mexican subsidiaries, which own a 100% interest in the Mercedes mine, for total consideration consisting of $125.5 million in cash and stock.
Premier granted Yamana a 1% net smelter return royalty on production from the current land package relating to the Mercedes mine on the earlier of the date on which 450,000 ounces of gold equivalent has been produced by the Mercedes mine following September 30; and September 30, 2022. Yamana was also granted a 2% net smelter return royalty on the La Silla property in Sinaloa, Mexico, and the La Espera property in Sonora, Mexico.
Premier is an exploration and development company with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada, the United States and Mexico. Anticipated gold production in excess of 100,000 oz during the final quarter of 2016 will come from its interest in the South Arturo mine in Nevada and the recently acquired Mercedes mine in Mexico.