Major gold miner Newcrest to acquire Pretium for $2.8 billion

By Kitco News / November 08, 2021 / www.kitco.com / Article Link

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(Kitco News) - Newcrest Mining (ASX, TSX: NCM) announced today that it has entered into an agreement to acquire all of the issued and outstanding common shares of Pretium Resources (TSX, NYSE: PVG) that it does not already own by way of a Canadian Plan of Arrangement.

The company said that under the transaction, Pretivm shareholders will receive consideration of C$18.50 per share, which represents a 22.5% premium to Pretivm's last closing price and a 24.2% premium to Pretivm's 10 day VWAP on the Toronto Stock Exchange as of 8 November 2021.

The total consideration offered values all of the outstanding common shares of Pretivm at approximately $2.8 billion, on an undiluted basis, the company added. Newcrest noted that it already owns a 4.8% shareholding in Pretivm.

Pretivm is the owner of the Brucejack operation in the highly prospective Golden Triangle region of British Columbia, Canada. Brucejack began commercial production in July 2017 and is one of the highest-grade operating gold mines in the world.

The Pretivm Technical Report of 9 March 2020 estimated gold production of 311koz per annum at an all-in sustaining cost of $743 per ounce of gold over a projected 13 year mine life.

Brucejack is approximately 140 km from Newcrest's majority-owned and operated Red Chris mine, located on Tahltan territory. Newcrest said it will become the operator and 100% owner of Brucejack following completion of the transaction which is currently targeted for Q1 of calendar 2022.

By Vladimir Basov

For Kitco News

Contactvbasov@kitco.comwww.kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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