On March 9, 2015 Centerra Gold and Premier Gold Mines Limited formed a 50/50 partnership for the joint ownership and development of the Trans-Canada Property including the Hardrock Gold Project located in the Geraldton-Beardmore Greenstone Belt in Ontario, Canada
Centerra made an initial cash contribution to the partnership in the amount of C$85 million for its 50% limited partner interest. Centerra and Premier have formed a joint board of directors to oversee future exploration, development and operations by the partnership of the Trans-Canada Property.
Centerra has committed to invest C$185 million to advance the project, of which half or C$92.5 million is on behalf of Premier. A portion of this funding will first be used to complete a mineral resource update and the feasibility study. The remainder of the funds will be used towards the construction and development of the Hardrock Project, subject to the satisfaction of certain feasibility and project advancement criteria. After Centerra has contributed its C$92.5 million (for a total investment of C$185 million), further funding of the project is on a 50/50 basis.
Additional exploration and infill drilling is scheduled for 2015. The resource estimate will be updated using the 2015 drill results and will also incorporate 35,000 metres of drilling that was completed by Premier in late 2014. If the results of the drilling and revised resource estimate demonstrates an increase in the contained ounces within the Hardrock Project open pit shell as defined in Premier’s August 22, 2014 Technical Report, then Premier would receive a contingent payment of up to C$30 million depending on the number of ounces added.
The updated resource estimate will be used in complexting a feasibility study for the development of the property.
Technical Report on the Trans-Canada Property