2010-06-21 07:43 ET - News Release
Mr. Ewan Downie reports
PREMIER ANNOUNCES CDN$12 MILLION FLOW-THROUGH EQUITY FINANCING
Premier Gold Mines Ltd. has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp. and RBC Capital Markets pursuant to which the underwriters have agreed to purchase for resale or arrange for substituted purchasers through a private placement and Premier has agreed to issue 2.0 million flow-through common shares, on a bought deal basis, at a price of $6.00 per flow-through common share for gross proceeds of $12-million.
In addition, the company has agreed to grant the underwriters an option to purchase up to an additional 1.0 million flow-though common shares of Premier to raise additional gross proceeds of up to $6-million, on the same terms and conditions as the offering, exercisable any time, in whole or in part, up to 48 hours prior to the closing date of the offering. If the Over-Allotment Option is exercised in full, the total gross proceeds to Premier will be Cdn$18 million.
The flow-through common shares will be offered to "accredited investors" under National Instrument 45-106 in British Columbia, Alberta, Ontario and other Canadian provinces as agreed upon by the Company and the Underwriter.
The proceeds from the sale of the flow-through common shares will be used for exploration and development of the Company's Canadian mineral projects. The Offering is expected to close on or about July 15, 2010 and is subject to normal regulatory approvals, including the approval of the Toronto Stock Exchange.
