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.
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.
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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.