Pretium closes $540m financing to develop underground mine at Canada’s Brucejack Project

21 September 2015 (Last Updated September 21st, 2015 18:30)

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.

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.

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.