BRITISH COLUMBIA – Pretium Resources of Vancouver has secured a US$540-million construction finance package for the Brucejack gold development 65 km north of Stewart. Orion Mine Finance and Blackstone Tactical Opportunities will make US$340 million immediately available upon closing.
The financing is comprised of a credit facility for US$350 million, a US$150-million prepayment under a callable gold and silver stream agreement, and a private placement of 3.85 million Pretium shares that will raise approximately US$40 million.
The money made available under the terms of this financing is enough to fund more than 70% of the development costs. The 2014 feasibility study estimated that the preproduction capital expenditure would be US$747 million. Some of the capex has already been spent, and much of the materials and labour will be sourced in Canada, so the recent decline in the Canadian dollar against the US dollar will have less impact on costs than might otherwise be the case. Pretium continues to optimize the project as engineering advances.
The Pretium board has officially given the go-ahead for the Brucejack project. Commercial production is targeted for 2017.
Visit Pretivm.com for details of the Brucejack geology, resources and technical reports.