Pretium Resources divests Snowfield property in British Columbia

18 December 2020 (Last Updated December 18th, 2020 16:07)

Pretium Resources and its wholly-owned subsidiary Pretium Exploration have closed a previously announced sale of the Snowfield property in northern British Columbia, Canada.

Pretium Resources and its wholly-owned subsidiary Pretium Exploration have closed a previously announced sale of the Snowfield property in northern British Columbia, Canada.

The property was acquired by KSM Mining, a wholly-owned subsidiary of Seabridge Gold.

As agreed, Pretium Resources received $100m in cash as consideration.

The company is also entitled to receive a 1.5% net smelter royalty with respect to all production from Snowfield, as well as a $20m cash payment contingent on completing a bankable feasibility study of the property.

Pretium Resources president and CEO Jacques Perron said: “The divestment surfaces immediate value for a non-core asset and accelerates our plans to deleverage our balance sheet.

“Combining Snowfield with Seabridge’s other assets creates synergies of scale that improves the likelihood it will reach production and the royalty ensures our participation in that long-term success.”

The company intends to apply the proceeds of the transaction to the revolving portion of its credit facility, which had an outstanding principal balance of $198m at 30 September 2020.

Snowfield Project is located around 65km north of the town of Stewart and 21km south-southeast of Barrick’s Eskay Creek Mine.

The project hosts a near-surface, low-grade, bulk tonnage, porphyry-style gold deposit along with gold-copper, molybdenum and rhenium mineralisation.

According to a 2011 resource estimate, it has 25.9 million ounces of measured and indicated gold resources and 9 million ounces of inferred resources at a cut-off grade of 0.30 grams of gold-equivalent per tonne.