China's Zijin Mining takes stake in Canada gold company Pretium

Mon Dec 8, 2014 2:10pm EST
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Dec 8 (Reuters) - Zijin Mining Group Co Ltd, China's largest listed gold producer, is buying nearly a 10 percent stake in Pretium Resources Inc, a small Canadian miner developing one of the highest grade gold finds in recent times.

Zijin will buy a 9.9 percent stake in Pretium for C$80.9 million ($70.56 million), the two parties said on Monday. In the transaction, a private placement, Pretium will issue 12.8 million shares to Zijin at C$6.30 a share.

Pretium's shares added 2 Canadian cents to C$6.52 on the Toronto Stock Exchange.

The financing comes as miners struggle to raise funds for building new mines due to weaker metals prices and following several high-profile cost blow-outs on mine developments in recent years.

Pretium is in the process of permitting its Brucejack project in British Columbia and said it would use the money to fund capital expenses such as camp infrastructure.

Under terms of the deal, Zijin can nominate one person to Pretium's board.

Media reports last month quoted a government official in Argentina as saying that Zijin had held talks with Barrick Gold Corp , the world's largest gold miner, on possibly investing in Barrick's stalled $8.5 billion Pascua-Lama gold project. ($1 = 1.1466 Canadian dollars) (Reporting by Nicole Mordant in Vancouver; Editing by Jeffrey Benkoe)