Pretium president and CEO Jacques Perron said: “With this acquisition, Brucejack will join Newcrest ’s portfolio of tier one assets, mitigating the inherent risks associated with ownership of a single-asset mining company.
“Moreover, Newcrest has the financial means and the intention of maximising the long-term potential of the Brucejack Mine and the district scale opportunities in the surrounding Brucejack property.”
Pretium ’s board has unanimously recommended its shareholders to vote in favour of the deal.
Newcrest managing director and CEO Sandeep Biswas said: “Brucejack is a Tier 1 mine in a Tier 1 jurisdiction and will deliver immediate production, free cash flow and earnings diversification to Newcrest and will fit seamlessly into our long-life, low-cost portfolio.
“Following this transaction, Newcrest will have exposure to six Tier 1 orebodies and a portfolio of organic growth options of unrivalled quality. The transaction will also drive a material increase in mineral resources, ore reserves and annual gold production.”
The deal is planned to be completed in the first quarter of 2022.
It is subject to Pretium shareholders, in addition to the approval under the Investment Canada Act and other requirements.