Centerra turns down Premier Gold's $205m offer

A historic headframe at Premier Gold Mines' Hardrock gold project in Ontario. Photo by Premier Gold Mines.

Premier Gold (TSX:PG) announced on Wednesday that Centerra (TSX:CG) has not accepted the company's offer to acquire Centerra's 50% interest in the Greenstone Gold Mines Partnership for approximately $205 million.

Greenstone's principal asset is the Hardrock Project located on the Trans-Canada Highway in Ontario. It is considered one of the most significant large-scale, near permitted, mine development opportunities in North America, Premier said in a media release.

"Centerra's decision not to accept our offer confirms that Centerra recognizes the substantial value of the Hardrock Project and is inconsistent with its refusal to make a Positive Feasibility Decision in connection with the Project", said Ewan Downie, Premier's chief executive.

Hardrock has been a contentious project for both Premier and Centerra, with the latter filing a lawsuit over a project update made in December by Greenstone Gold Mines which Centerra argues should not be considered a "Feasibility Study," and Premier filing a counterclaim in response.