Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Pretium Resources, a gold junior developing the Brucejack and Snowfield properties in British Columbia, today raised $70 million through a share offering.
Vancouver-based Pretium (TSX:PVG) sold 4.83 million shares to a syndicate of underwriters at a price of C$14.50 per share, just under its closing price of $14.76 on Thursday.
Net proceeds will be put towards more exploration on the Brucejack deposit, where Pretium in 2011 completed a 72,144-meter drill program.
Pretium said yesterday it has started a 25,000m infill drill program with seven drills turning. Highlights included one hole intersecting 9,110 grams per tonne over half a metre, and a second hole intersecting 1,490 g/t over 0.7m.
A preliminary assessment on the property completed in February of this year shows 11.8 million tonnes of gold mineralization graded 18.9 g/t gold and 59.8 g/t silver. The mine would produce on average, 325,000 ounces of gold over the first 12 years and 287,000 over the life of the mine.
Pretium is led by former Silver Standard CEO Robert Quartermain. Read a BC Business interview with Quartermain
Photo of the Brucejack exploration camp courtesy of Pretium Resources.
Full news release below:
VANCOUVER, BRITISH COLUMBIA–(Marketwire – May 3, 2012) – Pretium Resources Inc.(TSX:PVG)(NYSE:PVG) (“Pretivm” or the “Company”) announced that it has entered into an underwriting agreement today with a syndicate of underwriters, in connection with its previously announced marketed offering of common shares (the “Offering”).
The underwriters have agreed to purchase 4,830,000 shares at a price of C$14.50 per share (the “Offering Price”) for gross proceeds of C$70,035,000. The Offering will be made under a prospectus supplement dated May 3, 2012 to the Company’s short form base shelf prospectus dated March 19, 2012, to be filed with the securities regulatory authorities in each of the provinces and territories ofCanada except Quebec. The Supplement will also be filed with the U.S. Securities and Exchange Commission (“SEC”) as part of a registration statement on Form F-10 in accordance with the Multijurisdictional Disclosure System established between Canada and the United States.
The Company has also granted the underwriters an over-allotment option to purchase up to an additional 724,500 common shares at the Offering Price, exercisable for a period of 30 days following closing. Scotia Capital Inc. is the lead underwriter in a syndicate that includes Cormark Securities Inc., GMP Securities L.P., CIBC World Markets Inc., Citigroup Global Markets Canada Inc., UBS Securities Canada Inc., BMO Capital Markets, Dahlman Rose & Company, LLC andSalman Partners Inc.
The net proceeds of the Offering will be used to fund ongoing exploration on the Company’s Brucejack project in northwestern British Columbia.
Closing of the Offering will be subject to a number of conditions, including approval of the Toronto Stock Exchange and the New York Stock Exchange.
A copy of the Supplement and the short form base shelf prospectus may be obtained in Canadafrom Scotia Capital Inc. attention: Equity Capital Markets (tel: 416-862-5837), Scotia Plaza, 66th Floor, 40 King Street West, M5W 2X6, Toronto, Ontario; or in the United States, attention: Equity Capital Markets (tel: 212-225-6853), 1 Liberty Plaza, 25th Floor, 165 Broadway, New York, NY, 10006.
Forward Looking Statements
This Press Release contains “forward-looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. Forward-looking information may include, but is not limited to, risks related to unsatisfactory results of due diligence, the ability to satisfy the conditions of closing of Offering and general economic conditions, our planned exploration and development activities, the adequacy of the Company’s financial resources, the estimation of mineral resources, realization of mineral resource estimates, timing of development of the Company’s Brucejack Project, costs and timing of future exploration, results of future exploration and drilling, production and processing estimates, capital and operating cost estimates, timelines and similar statements relating to the economic viability of the Brucejack Project, timing and receipt of approvals, consents and permits under applicable legislation, the Company’s executive compensation approach and practice, and adequacy of financial resources. Wherever possible, words such as “plans”, “expects”, “projects”, “assumes”, “budget”, “strategy”, “scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”, “intends” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking statements and information. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, those risks identified in Pretivm’s preliminary Prospectus dated February 24, 2012 filed on SEDAR at www.sedar.com and in the United States through EDGAR at the SEC’s website at www.sec.gov. Forward-looking information is based on the expectations and opinions of Pretivm’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. We do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.
Neither the TSX nor the NYSE has approved or disapproved of the information contained herein.
FOR FURTHER INFORMATION PLEASE CONTACT: Pretium Resources Inc. Robert Quartermain President and Chief Executive Officer (604)558-1784 Pretium Resources Inc. Michelle Romero Corporate Relations Director (604)558-1784 [email protected] www.pretivm.com Source: Pretium Resources Inc.
