Mining News: Northern Neighbors: Pretium secures cash to develop Brucejack

Pretium Resources Inc. Sept. 16 said it has secured a US$540 million construction financing package with the Orion Mine Finance Group and Blackstone Tactical Opportunities. 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 Pretium’s Brucejack gold project in Northwest British Columbia. “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 (and) flexible, and that protect Brucejack’s upside for our shareholders,” said Pretium CEO Robert Quartermain. “Having immediate access to US$340 million enables us to keep to our construction schedule.” The financing is comprised of a US$350 million credit facility at fixed interest rate of 7.5 percent; a US$150 million prepayment under a callable stream agreement that involves an estimated 7.067 million ounces of refined gold and 26.297 million oz of refined silver and a private placement of Pretium common shares for US$40 million.

–Shane Lasley