TORONTO (miningweekly.com) – China’s largest gold miner Zijin Mining has agreed to buy a 9.9% stake in British Columbia-based Pretium Resources, which is working to advance the high-grade Brucejack gold project in the province’s north, for C$80.87-million.
Vancouver-based Pretium said on Monday that it would issue to Zijin 12.84-million common shares at C$6.30 apiece, which would constitute a significant portion of the planned equity component of the financing required to bring the Brucejack project into production.
Pretium, which was currently negotiating the permitting process for a 2 700 t/d underground mine at Brucejack, explained that it intended to use the proceeds from the offering to fund capital expenditures, including procuring long-lead items and camp infrastructure.
“Zijin's investment positions us well at a critical stage in our advance to production. Zijin is a well-capitalised 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,” Pretium CEO Robert Quartermain said in a statement.
The offering was scheduled to close on or about January 16, subject to regulatory approvals and approvals from the Chinese government.
Under the subscription agreement, Zijin would be able to nominate one person to the Pretium board and would have a pre-emptive right to participate in any future equity financings to maintain its 9.9% interest.
Pretium’s TSX-listed stock rose 2.31% on Monday to C$6.65 apiece.