Barrick Gold Corp. (TSX:ABX) owns the other 60 per cent interest in the South Arturo mine project, which is eight kilometres from Barrick's Goldstrike mining operation, and has right of first refusal.
Premier has agreed to pay Goldcorp US$20 million at closing and to transfer five per cent of its interest in the Rahill-Bonznsa joint venture in Red Lake, Ont., where Goldcorp has one of its major mines.
In turn, Goldcorp has agreed to invest C$12.5 million in Premier. It has also agreed to pay Premier a break fee if Barrick exercises its right of first refusal on the South Arturo project.
Goldcorp would pay Premier US$1.1 million or five per cent of the price that Barrick pays Goldcorp, whichever is greater.
Vancouver-based Goldcorp and Toronto-based Barrick are Canada's two-largest gold producers, and among the largest in the world.