09 Nov Newcrest to buy out Canada’s Pretium Resources in $2.8 billion deal
Australia’s Newcrest Mining has entered into an agreement to acquire all outstanding common shares of Pretium Resources (Pretivm) it does not already own, in a deal that values the Canadian miner at US$2.8 billion.
Pretivm’s board of directors unanimously recommended shareholders vote in favour of the transaction and have entered into voting support agreements with respect to all of the Pretivm shares that they control.
TSX and NYSE-listed Pretivm is the owner of the Brucejack gold mine in the highly prospective Golden Triangle region of British Columbia. Newcrest will become the operator and 100% owner of Brucejack following completion of the transaction, which is currently targeted for the first quarter of 2022.
The acquisition fits in with Newcrest’s strategy to build a Canadian portfolio of assets following its listing on TSX last year. The Brucejack operation is located approximately 140 km from Newcrest’s Red Chris copper-gold mine.
“We are delighted to be expanding our presence in this highly prospective region in British Columbia. Brucejack is a Tier 1 mine in a Tier 1 jurisdiction and will deliver immediate production, free cash flow and earnings diversification to Newcrest,” Newcrest CEO Sandeep Biswas said.
“The combination of Newcrest and Pretivm will create the leading gold miner in British Columbia’s Golden Triangle, operating both the Brucejack and Red Chris mines,” he added.
Last month, Pretivm made a new high-grade gold exploration discovery at the Golden Marmot zone on the Brucejack property, with eight assays intersecting gold with a highlight of 53.5 metres at 72.5 g/t.