VANCOUVER (miningweekly.com) – Canadian gold miner Pretium Resources has negotiated a nonbrokered private placement consisting of 329 000 flow-through common shares at C$15.20 each, for gross proceeds of about C$5-million.
The company, which last week announced that first gold has been poured at its flagship Brucejack mine, in British Columbia, will use the proceeds from the offering to undertake grassroots exploration about 20 km east of the Brucejack mine.
The 2017 programme will follow up on results from the 2016 grassroots exploration campaign, the company advised.
Pretium said the offering will close in two tranches, after documentation has been finalised and pending regulatory approvals, including that of the TSX.
Flow-through shares allow for the money raised through the sale of such shares for Canadian exploration expenses, to be renounced by the company and flowed through in favour of the buyers of the shares, making it a tax efficient vehicle for investors.