A tentative agreement between Westmin Resources (TSE) and Pioneer Metals (TSE) calls for Pioneer to transfer to Westmin its 40% interest in the Premier Gold project near Stewart, B.C. In return, Westmin would forgive a debt of over $18 million owed to it by Pioneer. The settlement is still conditional upon the consent of Pioneer’s major lender, which holds a charge on Pioneer’s interest in the project.
If the agreement is executed, Westmin would own 100% of the gold-silver mining operation which includes a mill with a capacity of 2,200 tons per day.
Pioneer will retain a 1% net smelter return on ore produced from any property currently part of the Premier Gold project, and a 5% net profits interest in all profit stemming from mining operations of the Premier joint venture property after recovery of all costs (including the 1% NSR).
Pioneer said the agreement is part of its continuing efforts to settle with its outstanding creditors.
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