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Pretium Resources (TSX:PVG) has secured a US$540 million financing package for its Brucejack project in British Columbia. The agreement includes a senior secured loan facility of $350 million, as well as offtake and stream agreements.
Pretium Resources (TSX:PVG) has secured a US$540 million financing package for its Brucejack project in British Columbia. The agreement includes a senior secured loan facility of $350 million, as well as offtake and stream agreements.
As quoted in the press release:
Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) (“Pretivm” or the “Company”) is pleased to announce a US$540 million construction financing package (the “Financing”) with the Orion Mine Finance Group and Blackstone Tactical Opportunities (“Orion and Blackstone”). The Financing, which provides for immediate access to US$340 million at closing, will fund a substantial portion of the costs to develop an underground mine at Pretivm’s Brucejack Project. The Financing is comprised of a credit facility for US$350 million, a US$150 million prepayment under a callable gold and silver stream agreement and a private placement of Pretivm common shares for US$40 million. The Financing is expected to close on or about September 18, 2015.
Pretium CEO, Robert Quartermain, said:
The Orion and Blackstone deal has successfully met our objectives to fund the construction of an underground mine at Brucejack under terms that are competitive, flexible, and that protect Brucejack’s upside for our shareholders. Having immediate access to US$340 million enables us to keep to our construction schedule. The repayment optionality gives us the scope to refinance during a period of solid cash flows at the mine, and in a potentially higher gold price environment.