- Premier Gold Mines (PG) announced it will defend against allegations made by Centerra Gold (CG)
- The allegations regard a joint venture set up between the two companies to redevelop the Hardrock mine in Ontario
- Centerra Gold alleges the “2019 Hardrock Progress Report” does not meet the pre-arranged criteria for a feasibility study, and therefore cannot inform the mine’s redevelopment
- Premier Gold plans to defend against Centerra’s claim and maintains that the update does qualify as a feasibility study
- The court date is set for October of this year
- Premier Gold Mines (PG) was up 6.08 per cent, with shares currently trading for C$1.57
- Centerra Gold (CG) was up 4.3 per cent, with shares currently trading at C$10.19
Premier Gold (PG) announced today that it will defend against allegations made by Centerra Gold’s (CG) subsidiary Aurico Canadian Royalty.
Each company holds a 50/50 claim in the joint venture Greenstone Gold Mines GP Inc. The joint venture was created to develop the Hardrock Project in Ontario.
The HardRock mine was gold mine operating between 1930 and1970. The joint venture has been performing exploration and feasibility activities on site to establish whether or not the mine can be redeveloped.
Last December, Premier Gold received a notice of claim from the Ontario Superior Court of Justice.
Centerra Gold has alleged that a “2019 Hardrock Update” publish by Greenstone does not meet the criteria set by the joint-venture agreement. Therefore, Centerra claims, it cannot be the basis of future development onsite and should be disregarded.
Premier alleges that the report does meet the agreed criteria, that it was written independently, and with Centerra Gold’s full knowledge and input.
Premier suggests that this claim is the result of “series of self-interested actions […] that call into question the bone fides of objections raised”. Though the exact nature of these self-interested actions remains unclear.
Centerra Gold (CG) was up 4.3 per cent, with shares currently trading at C$10.19.
Premier Gold Mines (PG) was up 6.08 per cent, with shares currently trading for C$1.57.