Premier Gold Resources: Funding for exploration ramp up at Cholokkaindy

We noted with interest the news from Premier Gold Resources (LON:PGR) covering their latest financing developments.  In brief the company has established a new source of incoming finance through a £1m convertible loan note.

These are challenging times in the exploration sector and call for innovative solutions. But such instruments always need to be closely scrutinised as the terms, such as they impact on investors, can vary widely. This loan note seems however to have a few interesting features that actually look to play to the benefit of the company’s existing shareholders.  The terms are:

Premier Gold Resources: Interview with CEO Richard Nolan

Being in from the start of a value creative phase of exploration is the ultimate goal for natural resource investors. And there is no more valuable a phase than the interaction of the drill bit in the heart of a highly prospective and seemingly highly mineralised licence area.

So we expect investors will be interested to hear about Premier Gold Resources (LON:PGR) from its CEO Richard Nolan, in the latest MiningMaven podcast interview.

PGR, snow permitting are about to launch their 2013 field season including drilling of principal targets at their Krygystan gold licence. Their work to date has confirmed length and width of mineralisation, something which has grown substantially in size through soil sampling and trenching conducted by the company. And now they move on to the question of depth.

Premier Gold Resources: Value Proposition

Economic gold discoveries are becoming extremely rare.  Despite record exploration spending of US$8b in 2011 the number of 5 million ounce plus discoveries is slowing to a trickle.  From 1991 to 2000 there were 68, from 2001 to 2010 just 27 and in the four years to 2011, only 6.