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

The company secured financing from Orion Mine Finance Group and Blackstone Group’s Tactical Opportunities Fund.

According to the company, the financing consists of a credit facility for $350m and a $150m prepayment under a callable gold and silver stream agreement, as well as a private placement of the company’s common shares for $40m.

"Having immediate access to $340m enables us to keep to our construction schedule."

Pretivm Resources CEO Robert Quartermain said: "The Orion and Blackstone deal has successfully met our objectives to fund the construction of an underground mine at Brucejack under terms that are competitive, flexible, and that protect Brucejack’s upside for our shareholders.

"Having immediate access to $340m enables us to keep to our construction schedule."

The proceeds from the financing cover more than 70% of the estimated capital cost of $747m to develop a mine at the project, the company noted.

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By GlobalData

Pretivm’s board of directors has also approved a production decision for the project after all of the necessary regulatory permits have been secured to begin development work.

Construction at the project is expected to begin with commercial production targeted for 2017.

The Brucejack project is part of a largely unexplored land package of over 103,000ha located about 65km north of Stewart.

Pretivm completed a feasibility study for the project in June 2014 for an underground mine with an operating rate of 2,700t per day using a mining method of long-hole stoping and cemented paste backfill.