Premier Gold (OTCPK:PIRGF) has just announced what could be the most important deal in the company's history. Premier has with Centerra Gold (OTCPK:CAGDF) to jointly develop the Trans-Canada project which contains almost 5 million ounces of gold in the measured and indicated resource categories. As this project is located in mining-friendly Ontario, I'm not surprised to see Trans-Canada being chased by a more senior gold mining company.
As part of the deal, Centerra will pay C$85M in cash to Premier Gold, which equates to US$68M and is a huge deal for Premier as it will increase its working capital position to close to $100M, which is a very comfortable situation for any exploration stage company. On top of that, Centerra will spend C$185M ($150M) on the project of which 50% will be deemed to be made on behalf of Premier Gold. This means that in…