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Premier Gold sells royalties to Franco Nevada

Thunder Bay mine developer makes package deal for $6 million
Premier Gold PQ property
Premier Gold's PQ North property in northwestern Ontario.

Thunder Bay’s Premier Gold Mines has sold a package of net smelter return royalties (NSR) to Franco-Nevada Corporation for US$6 million.

The package consists of a 2 per cent NSR on its PQ North gold exploration property, next to Newmont Goldcorp’s fly-in Musselwhite Mine in northwestern Ontario, and a 1.5 per cent NSR on its Rain/Emigrant and Saddle Properties located in Nevada.

A net smelter royalty refers to the fraction of the revenue – usually expressed as a single percentage – that a miner owner pays to the holder of a royalty agreement coming from the sale of a mine’s metal, minus the refining and shipping costs.

Franco-Nevada is a Toronto-based multi-billion-dollar gold streaming deal company that invests in mining projects for a share of future revenues.

Premier has partial ownership with Barrick in a gold mine in Nevada and runs a gold-silver operation in Mexico, as well as having a raft of exploration properties in Nevada, Mexico and northwestern Ontario, including the Greenstone Gold mine development near Geraldton.