Operators at the Brucejack mill go over performance in May 2019. (Image: Pretium Resources)
VANCOUVER and MONTREAL – Pretium Resources, the owner and operator of the Brucejack gold mine near Stewart, B.C., has arranged to buy back the mine’s royalties currently held by Osisko Gold Royalties.
Pretium will make a payment of US$31.2 million to Osisko on Sept. 30, 2019, and the balance on Nov. 30, 2019. The total cash purchase price to Pretium will be US$41.3 million.
Osisko chairman and CEO Sean Roosen said, “Since acquiring the Orion portfolio in 2017, we now have received approximately US$164.3 million from Pretium, including proceeds from the buyback of the stream and sale of the offtake as well as cash margins to date from the offtake, compared to a book value of approximately US$147.3 million for our investment in Pretium.”
Osisko says it will use the proceeds of the sales for additional investments. Osisko’s 2019 guidance included 500 gold equivalent oz. from the Brucejack project in the fourth quarter of this year.
Details of the Brucejack project are available at www.Pretivm.com.