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.
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