Premier Gold Mines Completes Royalty Purchase

Premier Gold Mines (PG.TSX) announced the closing of the purchase by its wholly-owned subsidiary, Premier Royalty Corporation from Aberdeen International Inc., of a 1% net smelter return royalty on gold produced from Village Main Reef Limited’s Buffelsfontein Mine and First Uranium Corporation’s Mine Waste Solutions project in the Republic of South Africa.

Highlights:

* The purchase price for the Royalty was $20.9 million, which was satisfied by Premier Royalty paying $11.5 million in cash and issuing a $9.4 million convertible debenture to Aberdeen

* Premier Royalty will also issue warrants to Aberdeen to purchase common shares of Premier Royalty on completion of a public offering or other going public transaction by Premier Royalty

* The Cash Payment was funded by Premier Gold by way of a repayable bridge loan from its existing cash to Premier Royalty

* Premier Gold Mines is planning to take Premier Royalty public later this year

Abraham Drost, Chairman of Premier Royalty Corporation:

“This transaction is the first-closed of several acquisitions the Company is currently contemplating as value-added additions to its existing royalty portfolio in anticipation of a future go-public event. We look forward to serving Aberdeen’s best interests as a valued shareholder of the Company going forward.”

Ovais Habib, Scotia Capital:

Reiterates Sector Outperform rating and C$10.00 price target on Premier Gold Mines (PG.TSX)