Partner in Greenstone Gold offers to buy-out entire operation

Premier Gold Mines wants to buy-out its partner in Greenstone Gold Mines.

The Thunder Bay, Ont., based company has offered Centerra Gold $205 million US for its 50 per cent stake in the project.

Greenstone Gold is developing its Hardrock Project, which is just south of the community of Geraldton. The project includes moving Highway 11, the OPP station, as well as demolition of a number of homes, and the 'back 9' of the local golf course.

"Hardrock is one of the most significant large-scale, near permitted, mine development projects in North America," the company said in a news release on Monday.

The offer is a cash payment of $175 million US, and Premier would also assume all of Centerra's obligations under its current agreement for development. It also includes the remaining earn-in of $30 million.

An independent study, commissioned by Greenstone Gold Mines, said Premier has the financial capacity to purchase Centerra's interest in the project, while still being able to advance the project through construction.

Work on the Hardrock site has been ongoing for 12 years, with an initial feasibility study being completed on the project in 2016.

Greenstone Gold Mines has already obtained approvals for both Federal and Provincial Environmental Assessments, filed an updated closure plan, and has relationship agreements signed with all locally impacted First Nations.