Pretium Resources secures $540 mln financing for Brucejack project

Wed Sep 16, 2015 2:55am EDT
 
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Sept 15 (Reuters) - Canadian miner Pretium Resources Inc said it secured $540 million in financing to develop an underground mine at its Brucejack Project in British Columbia.

Pretium, whose Brucejack project is one of the highest-grade gold finds of recent times, said Orion Mine Finance Group and Blackstone Group's Tactical Opportunities Fund had agreed to provide the financing that would cover more than 70 percent of the estimated cost.

The financing includes a $350 million credit facility, a $150 million prepayment under a callable gold and silver stream agreement and a private placement of Pretium common shares for $40 million, the company said.

Pretium, which expects commercial production at the project to begin in 2017, said the funding deal would give it immediate access to $340 million upon closing.

Pretium had secured gross proceeds of about C$99 million ($74.78 million) from subscription agreements and Zijin Mining group Co for the Brucejack project in 2014.

In July, British Columbia and Canada's environment ministries said the Brucejack project was not likely to cause significant adverse environment effects. ($1 = 1.3238 Canadian dollars) (Reporting by Sangameswaran.S; Editing by Anupama Dwivedi)