On January 10, 2018 Premier Gold Mines Ltd and Barrick Gold Corp signed a comprehensive Nevada-focused agreement (click here for press release) which provides for Barrick to hold an option to earn a 60% interest in the Property subject to the following:
- A firm commitment to spend US$6.0 Million in exploration prior to June 30, 2019 with Premier as Operator at the direction of a Steering Committee, following which Barrick will have the option to become the Operator
- An additional required spend of US$16.5 Million in exploration on the Property prior to June 30, 2022 with Barrick as Operator
- Following completion of Barrick’s 60% earn-in, funding for the Joint Venture Property will be on a proportionate basis. Barrick will hold a right of first refusal over the “Cove Deposit” until the earliest of 5.5 years or one year following the completion of the earn-in on the Joint Venture Property
- The Joint Venture Property will exclude the “Cove Deposit” portion of the McCoy-Cove Property which will be retained solely by Premier
Exploration on the McCoy-Cove Joint Venture Property is expected to begin in 2018 and will include detailed surface mapping and sampling followed by drilling to test several prospective targets.
The McCoy-Cove Property benefits from significant historic geological datasets, local and regional networks that include its proximity to paved highways, electric power and pre-existing mining infrastructure. Premier has developed strong relationships within local communities including the Town of Battle Mountain, which provides important manpower and services to the Property and serves as the location of its regional office. Management believes Nevada’s rich mining past is indicative of its current discovery potential and that McCoy-Cove will play a significant role in creating Premier’s future successes.