Pretium Resources Sees C$81-million Investment From China's Largest Gold Producer
Pretium Resources is one step closer to financing the development of its exceptionally high-grade Brucejack project in Northern British Columbia. On Monday, the company announced a whopping C$81-million strategic investment from China's Zijin Mining.
Pretium Resources (TSX:PVG,NYSE:PVG) is one step closer to financing the development of its exceptionally high-grade Brucejack project in Northern British Columbia. On Monday, the company announced a whopping C$81-million strategic investment from China's Zijin Mining (SSE:601899,HKEX:2899). According to Pretium's release, the private placement will account for a significant portion of the planned equity component of financing for Brucejack. It will see Pretium issue 12,836,826 common shares to Zijin at a price of C$6.30 per share to raise gross proceeds of roughly C$80,872,004. If the offering closes as expected near January 16 of next year, Zijin will own just under 10 percent of Pretium's shares. Michelle Romero, vice president, corporate relations at Pretium, said that the company hopes to have the rest of the financing package for Brucejack resolved by Q1 2015. Moving forward Pretium CEO Robert Quartermain said in a statement, "Zijin's investment positions us well at a critical stage in our advance to production ... Zijin is a well-capitalized shareholder, and as fellow shareholders, we value their long-term outlook and commitment to gold and to the successful development of our Brucejack Project as a high-grade gold mine." Specifically, Pretium will use proceeds from the offering for capital expenditures, "including the procurement of long-lead items and camp infrastructure." To be sure, Pretium is moving ahead quickly with the Brucejack project. With a feasibility study completed in June 2014, permitting for a 2,700-tonne-per-day underground mine at the property is already underway. A November 11 article from Seeking Alpha notes that a decision on the permit application is expected in the first half of 2015, and that production could start in 2017.