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News Update


Canadian Producer Buys Back Gold Offtake Agreement for $80 Million
News Update

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The new arrangement will go into effect at the end of this month.

Pretium's Brucejack Mine

Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced in a news release it reached an agreement to reacquire all of its gold offtake for about $80 million on Sept. 30, 2019. In doing so, it will eliminate its 2015 construction financing package.

"Brucejack's robust cash flow has enabled us to pay down the construction financing package quickly," Pretium President and CEO Joseph Ovsenek said in the release. "We have set our sights on paying off the bank debt facility as rapidly as possible."

Under the new agreement, Pretium's previous offtake agreement will end on Sept. 30, 2019. In exchange, Pretium will pay Triple Flag Mining Finance Bermuda Ltd. and Osisko Bermuda Ltd. an aggregate amount of about $80 million, about $13 per ounce for all of the refined gold left to be delivered under the offtake agreement. Pretium will make the payment in two tranches, $60 million on Sept. 30 and $20 million in Q4/19.

In other news, Pretium reported that underground drill results from Brucejack "continue to confirm potential for a porphyry deposit at depth," the release noted.

Additionally, to the east of Brucejack, four rigs are drilling the Bowser claims, two in the A6 zone, and one each in the Canoe and Koopa zones. Drilling is expected to continue through September.

So far, in the A6 zone, hole BR-038 hit high-grade silver and copper mineralization within the overlying mudstones. Assays included 1,010 grams per ton (1,010 g/t) silver and 0.28% copper over 1.5 meters (1.5m) at 153m downhole and 2,890 g/t silver and 1.81% copper over 1.5m at 187.5m downhole.

Pretium will report further drill results as they become available.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources. Click here for important disclosures about sponsor fees.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pretium Resources, a company mentioned in this article.

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