Mining company Pretium Resources has closed its $540m construction financing package to develop an underground mine at its 100%-owned Brucejack Project in British Columbia, Canada.

The finance, secured with the Orion Mine Finance Group and Blackstone Tactical Opportunities, consists of a $350m credit facility, a $150m prepayment under a callable gold and silver stream agreement, in addition to a private placement of Pretivm common shares for $40m.

Commercial production from the underground gold mine at the company’s Brucejack Project is targeted for 2017.

"The company previously said that the proceeds cover more than 70% of the estimated capital cost of $747m to develop a mine at the project."

The company previously said that the proceeds cover more than 70% of the estimated capital cost of $747m to develop a mine at the project.

In June 2014, Pretium completed a feasibility study on its Brucejack Project, which is part of a largely unexplored land package of 103,000ha, located 65km north of Stewart.

The project primarily focuses on the Valley of the Kings that consists of high-grade visible gold stringers within a lower grade gold quartz stockwork system.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

In a separate announcement, Pretium reported initial results from the grass-roots exploration drill programme that is underway at present in the Flow Dome Zone east of the Brucejack Project.

According to the company, high-grade intersections and long intervals of low-grade mineralisation suggest a new stockwork zone or an extension of the Valley of the Kings deposit.