Premier Gold exchanges 50% claim interest with Red Lake
Premier Gold Mines Ltd (C:PG)
Shares Issued 59,195,742
Last Close 5/8/2007 $2.10
Wednesday May 09 2007 - News Release
Mr. Ewan Downie reports
PREMIER-GOLDCORP SIGN ASSET EXCHANGE AGREEMENT
Premier Gold Mines Ltd. has signed an asset exchange agreement with Red Lake Gold Mines (the partnership), a subsidiary of Goldcorp Inc.
Under the terms of the agreement, the partnership has agreed to transfer to Premier an undivided 50-per-cent interest in and to certain mining claims in the Red Lake district known as the Rahill-Wilmar and Kostynuk properties, and Premier has agreed to transfer to the partnership an undivided 50-per-cent interest in and to certain mining claims in the Red Lake district known as the Bonanza and Marathon properties.
Premier and the partnership have started exploration drilling on the combined properties, such property being referred to as the Rahill-Bonanza joint venture project. Premier is financing the initial $1-million in exploration on the property and future exploration will be financed on a 50/50 basis. Premier is the operator during the initial period of $5-million in exploration and Goldcorp will be operator thereafter. At any time during the first 18 months following the formation of the joint venture, Goldcorp has the option to increase its interest in the joint venture by 1 per cent to 51 per cent by paying Premier $440,000. Pursuant to this agreement, Goldcorp has exercised its right to participate up to 20 per cent in Premier's recently completed financing.
About the joint venture property
The Bonanza-Rahill project is strategically located between Goldcorp's Red Lake gold mine to the east and the Cochenour gold mine, and Gold Eagle's Bruce Channel discovery to the west. Red Lake is world renowned for high-grade gold and the Red Lake gold mine is regarded as one of the highest-grade gold mines in the world. The property is host to several high-grade gold zones, several of which will be tested in the current program. Additionally, drilling will be conducted from the workings of the Red Lake gold mine onto the joint venture property to test for the potential continuation of the horizons currently being mined onto the Bonanza-Rahill project.
Premier has granted stock options to Talman Finance SA to provide investor relation services for the corporation in Europe for a period of 18 months. Options for 125,000 shares will vest immediately and can be exercised at a price of $2.50 for a period of 18 months, and 125,000 options will vest in three months and can be exercised at a price of $2.75 for a period of 18 months.
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