Premier Gold’s El Niño Mine. Photo credit: Premier Gold Mines.

North American exploration company Premier Gold Mines said it is considering spinning out its US subsidiary that holds its Nevada assets to shareholders.

The move is part of the company’s asset reorganisation options evaluation to increase its portfolio’s property value.

According to the exploration company, the new US-based gold company would include Premier’s South Arturo and McCoy-Cove mine properties in Nevada.

Additional acquisition opportunities are being evaluated by Premier Gold through its US subsidiary.

Premier cautioned that a final decision has not been made and said that it cannot assure if this evaluation would result in a spin-out.

Premier Gold Mines president and CEO Ewan Downie said: “We are exploring the attractiveness of creating two companies that would benefit from streamlined property portfolios and a simplified domestic investment thesis.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Mining Technology.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Premier has assembled a high-quality portfolio of assets spanning exploration to mining operations and we believe the market is not fully valuing the sum of the parts. This is one option we are considering changing that.”

The South Arturo mine is located in the Carlin Trend, Nevada, US. It is operated by joint venture (JV) partner Nevada Gold Mines.

Premier owns a 40% stake in the JV and the remaining 60% stake is held by Nevada Gold Mines.

Nevada Gold Mines, a JV between Newmont-Goldcorp and Barrick Gold Exploration, is operated by Barrick.

The South Arturo Property comprises open pitable resources and the El Niño underground mineralisation.

Located in the Battle Mountain trend in north Nevada, the McCoy-Cove Property is about 20km south of Nevada Gold Mines Phoenix mine. It spans across an area of 30,660 acres.

In August 2016, Premier Gold Mines produced the first gold from South Arturo mine.

In October last year, Premier achieved commercial production at the El Niño underground mine located in the Carlin Trend of Nevada, US.