Major gold miner Newcrest to acquire Pretium for $2.8 billion
(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 BasovFor Kitco News
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