by Ewan Downie
Today Premier has announced the acquisition of the Mercedes Mine, in the State of Sonora, Mexico, from Yamana Gold. The acquisition of the Mercedes Mine is a compelling and transformative transaction. Our corporate development team has been conducting due diligence on a number of opportunities over the last 18 months. We have been very disciplined in our approach and review of each opportunity.
We regard the acquisition of Mercedes, our first 100%-owned operating mine, as an important bridge between current gold production at South Arturo in Nevada and potential future production from our Hardrock asset in Northern Ontario. It establishes Premier as a diversified gold producer with an attractive production growth profile and significant exploration prospects within world-class and mine-friendly jurisdictions. It is an appropriate and exciting “next step” in our transformation.
We are attracted not only by the exploration potential that exists on the property that exceeds 60,000 hectares in size and by the impressive transformation the operation has undergone in 2016, but also by the “pride of ownership” demonstrated by the entire Mercedes site. Yamana has done a tremendous job establishing Mercedes as a high quality, safe and well-run operation. Our goal is to continue this legacy for the benefit of our shareholders, employees and all stakeholders that have supported us in the past.
I look forward to Premier dovetailing our own exploration expertise with the Mercedes production and exploration team. We have a bright future together and that future begins today.