China’s Largest Gold Producer Investing C$81 Million in Pretium Resources

Pretium Resources (TSX:PVG,NYSE:PVG) will issue 12,836,826 common shares to Zijin Mining Group at a price of C$6.30 per share for gross proceeds of roughly C$80,872,004. Following completion of the private placement, Zijin will own roughly 9.9 percent of Pretium’s issued and outstanding shares. The offering is expected to close on or around January 16 2015.

As quoted in the press release:

Zijin is a Shanghai and Hong Kong listed company with extensive interests across a broad range of commodities, and is the largest gold producer in China.

The Offering constitutes a significant portion of the planned equity component of the financing required to bring the Brucejack Project into production. Pretivm intends to use the proceeds from the Offering to fund capital expenditures including the procurement of long-lead items and camp infrastructure. The permitting process for a 2,700 tonne-per-day underground mine at Brucejack is currently underway.

Pretium CEO, Robert Quartermain, said:

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.

Click here to read the Pretium Resources (TSX:PVG,NYSE:PVG) press release