PVG Pretium Resources Inc

RADNOR, Pa., Nov. 18, 2013 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Pretium Resources Inc (NYSE: PVG) ("Pretium" or the "Company"), between January 20, 2011 and October 21, 2013, inclusive (the "Class Period").  If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases.

Pretium engages in the acquisition, exploration, and development of precious metal resource properties, with a focus on gold and silver projects.  Prior to and throughout the Class Period, Pretium represented that it had substantial amounts of high-grade gold resources and reserves at its Brucejack Project, misleading investors and causing its securities to trade at artificially inflated prices.

The Complaint charges Pretium and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) the resource and reserve estimates provided by one of their advisors, Snowden Mining Industry Consultants ("Snowden") were not made in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Reserves; (2) Snowden's methodology in estimating gold resources and reserves at Brucejack was not reliable; (3) Snowden and Strathcona Mineral Services Ltd. ("Strathcona"), which had been hired in late 2012 to oversee and report on a 10,000 tonne bulk sample at the Brucejack Project disagreed as to the appropriate methodology for estimating gold reserves and resources at Brucejack; and (4) the Company's gold resource and reserve estimates were not supported by sufficient evidence, and thus, were unreliable.

On October 8, 2013, the Company shocked investors when it disclosed that Strathcona had resigned from its role in the project.  News outlets reported that Strathcona had resigned over disagreements between Strathcona and Snowden over the methodology for producing such estimates.  Upon the release of this news, the price of the Company's common stock declined $2.07 per share, or over 30 percent, to close at $4.70 per share on October 9, 2013, on heavy trading volume.

Then, on October 22, 2013, the Company disclosed additional information regarding Strathcona's resignation.  Specifically, the Company revealed that Strathcona had resigned after informing Pretium that there were "no valid gold resources" in Brucejack's Valley of the Kings zone, and after informing Pretium that "statements included in all recent press releases [by Pretium] about probable mineral reserves and future gold production [from the Valley of the Kings zone] over a 22-year mine life are erroneous and misleading."  Upon the release of this news, the price of the Company's common stock declined an additional $1.27 per share, or more than 27 percent, to close at $3.36 per share on October 22, 2013, again on heavy trading volume.

Members of the class may, not later than December 24, 2013, move the Court to serve as a lead plaintiff of the class.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus Kaskela, Esq..) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com.  For additional information about this lawsuit, or to join the class action online, please visit http://www.ktmc.com/cases.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country.  Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.  The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars).  For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

SOURCE Kessler Topaz Meltzer & Check, LLP