Premier Gold's subsidiary i-80 closes C$80M financing to execute its own business strategy
(Kitco News) - Premier Gold Mines (TSX:PG) (OTCPK: PIRGF) announced today that its wholly-owned subsidiary, i-80 Gold has closed its previously announced private placement offering for aggregate gross proceeds of approximately C$80.4 million.
The company said that the proceeds of the offering are expected to be used by i-80 for working capital and general corporate purposes, to pay for exploration and development expenses related to i-80's mining projects, and to fund the cash portion of the purchase price for the acquisition of the Getchell project in Nevada from affiliates of Waterton Global Resource Management.
"Upon closing of this financing, i-80 will have the balance sheet to execute on its business strategy" stated Ewan Downie, President and CEO of Premier. "We will be well positioned to rapidly advance this company immediately upon listing."
Following completion of the arrangement between Equinox Gold and Premier Gold, i-80 intends to complete Premier's previously announced acquisition of the Getchell Project in Nevada from Waterton.
On December 16, 2020, Equinox Gold and Premier Gold Mines announced that the companies have entered into a definitive arrangement agreement whereby Premier will transfer its US gold properties to i-80 and spin‑out 70% of the i-80 shares to Premier's shareholders, following which Equinox Gold will acquire all of the outstanding shares of Premier pursuant to the arrangement.
Premier remains focused on creating i-80 as a Nevada-focused mining company with an organic pipeline of assets to achieve mid-tier gold producer status. Following completion of the arrangement, i-80 intends to focus on the producing El Nino mine at South Arturo, as well as planning for future production growth through the potential addition of the Phases 1 & 3 open pits at South Arturo, advancing the Pinson underground and open pit opportunities at the Getchell project, and completing permitting and the underground development plan for the 100%-owned McCoy-Cove property.