On June 2, 2016, Premier Gold Mines (Premier) and Orion Mine Finance (Orion) closed a $45 million financing arrangement, pursuant to which Orion provided Premier with a multi-draw senior unsecured term facility in the amount of US$30 million, and subscribed for US$15-million of common shares of Premier.
Subject to good-faith negotiation, Orion has also agreed to provide access for up to US$400 million in financing for the expansion of Premier’s existing projects or a new project or entity acquisition by Premier.
In connection with the financing, the parties also entered into an offtake agreement pursuant to which Orion will purchase up to 20,000 ounces of refined gold annually from Premier’s existing projects and any projects acquired with funding from Orion.
Bennett Jones LLP represented Premier Gold Mines with a team that included Abbas Ali Khan, Ali Naushahi, Rami Chalabi and Christopher Travascio (corporate); Helgi Maki and Michelle Seto (financial services); Matthew Peters (tax); Jane Helmstadter (real estate); and Radha Curpen and Sharon Singh (environmental).
Torys LLP represented Orion Mine Finance with a team that included Michael Pickersgill, Robert Fatt and Braden Jebson (corporate); and Tom Zverina and Nadine Rockman Katz (financial services).