Pretivm to Refinance Construction Credit Facility; Secures Commitment Letter for US$480 Million
October 04 2018 - 5:00AM
Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
is pleased to report the signing of a commitment letter for a fully
underwritten US$480 million debt facility (the “Loan Facility”)
with The Bank of Nova Scotia, Societe Generale and ING Capital LLC.
Upon execution of the loan documentation and satisfaction of
conditions precedent, the Loan Facility will be available by way of
a US$250 million senior secured amortizing non-revolving credit
facility (the “Term Facility”) and a US$230 million senior secured
revolving credit facility (the “Revolving Facility”).
The Loan Facility will be used to refinance the
existing construction credit facility, approximately US$423 million
due on December 31, 2018, (the “Construction Facility”) for the
construction of the Brucejack Mine. Funds from the Revolving
Facility will also be available for general corporate purposes
including, if necessary, the repurchase of 100% of the existing 8%
precious metals stream. The Loan Facility will mature four
years from the closing date, which is expected this quarter.
“We are focused on execution and delivery at
Pretivm, and securing a signed commitment letter to refinance our
construction credit facility is another 2018 milestone we have
delivered on,” said Joseph Ovsenek, President and CEO of
Pretivm. “With a strengthened balance sheet and a focus on
operational efficiency we will continue to build free cash
flow.”
The Term Facility will be repaid in equal
quarterly installments of principal and accrued interest starting
the second full quarter following the closing date. The
Revolving Facility will reduce to US$200 million six months after
the closing date and shall be repayable as a bullet (principal and
accrued interest) on the maturity date. The Loan Facility
will bear interest at LIBOR + margin (depending on leverage ratios
and is expected to be lower than the Construction Facility), and
includes standard and customary finance terms and conditions
including with respect to fees, representations, warranties,
covenants and conditions precedent prior to closing.
About Pretivm
Pretivm is a low-cost intermediate gold producer
with the high-grade underground Brucejack Mine in northern British
Columbia.
For further
information contact: |
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Joseph OvsenekPresident
& CEO |
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Troy ShultzManager,
Investor Relations & |
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Corporate
Communications |
Pretium Resources Inc. Suite 2300, Four Bentall Centre, 1055
Dunsmuir Street PO Box 49334 Vancouver, BC V7X 1L4 (604) 558-1784
invest@pretivm.com (SEDAR filings: Pretium Resources Inc.)
Forward-Looking Statements
This news release contains “forward-looking
information”, “forward looking statements”, “future oriented
financial information” and/or “financial outlooks” within the
meaning of applicable Canadian and United States securities
legislation (collectively herein referred to as “forward-looking
statements” or “forward-looking information”). The purpose of
disclosing future oriented financial information and financial
outlooks is to provide a general overview of management’s
expectations regarding the anticipated results of operations and
costs thereof and readers are cautioned that future oriented
financial information and financial outlook may not be appropriate
for other purposes. Wherever possible, words such as “plans”,
“expects”, “guidance”, “projects”, “assumes”, “budget”, “strategy”,
“scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”,
“intends”, “modeled’, “targets” and similar expressions or
statements that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved, or the
negative forms of any of these terms and similar expressions, have
been used to identify forward-looking statements and
information. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be
forward-looking statements. Forward-looking information may
include, but is not limited to, information with respect to: the
Loan Facility, including its terms and conditions, its purpose, and
anticipated closing date; the Company’s precious metals stream,
including the anticipated repurchase thereof and the expected date
of repurchase; production and cost guidance (including without
limitation, all-in sustaining cost guidance); anticipated results
of our operations; our planned mining, exploration and development
activities; our operational grade control program, including plans
with respect to our infill drill program and our local grade
control model; the reconciliation of the global resource model for
the Valley of the Kings and the anticipated timing thereof; capital
and operating cost estimates; production and processing estimates;
the future price of gold and silver; the adequacy of our financial
resources; our intentions with respect to our capital resources;
our financing activities, including plans for the use of proceeds
thereof; the estimation of mineral reserves and resources including
the 2016 Valley of the Kings Mineral Resource estimate and the
Brucejack Mineral Reserve estimate; realization of mineral reserve
and resource estimates; timing of further development of our
Brucejack Mine; costs and timing of future exploration and
development; results of future exploration and drilling and timing
of such results; capital and operating cost estimates; timelines
and similar statements relating to the economic viability of the
Brucejack Mine, including mine life, total tonnes mined and
processed and mining operations; timing, receipt, and anticipated
effects of approvals, consents and permits under applicable
legislation; our executive compensation approach and practice; our
relationship with community stakeholders; litigation matters;
environmental matters; and statements regarding USD cash flows
currency fluctuations and the recurrence of foreign currency
translation adjustments. Statements concerning mineral
resource estimates may also be deemed to constitute forward-looking
statements to the extent that they involve estimates of the
mineralization that will be encountered if the property is
developed. Forward-looking statements are subject to a variety of
known and unknown risks, uncertainties and other factors that could
cause actual events or results to materially differ from those
expressed or implied by the forward-looking statements, including,
without limitation, those related to: the accuracy of our mineral
resource and reserve estimates (including with respect to size,
grade and recoverability) and the geological, operational and price
assumptions on which they are based; uncertainties relating to
inferred mineral resources being converted into measured or
indicated mineral resources; commodity price fluctuations,
including gold price volatility; general economic conditions; the
inherent risk in the mining industry; significant governmental
regulations; currency fluctuations, and such other risks as are
identified in Pretivm’s Annual Information Form dated March 28,
2018, Form 40-F dated March 28, 2018 and other applicable
disclosure documents filed on SEDAR at www.sedar.com and in the
United States through EDGAR at the Security and Exchange
Commission’s website at www.sec.gov (collectively, the “Pretivm
Disclosure Documents”). Our forward-looking statements are based on
the assumptions, beliefs, expectations and opinions of management
on the date the statements are made, many of which may be difficult
to predict and beyond our control. In connection with the
forward-looking statements contained in this news release, we have
made certain assumptions about our business, including about our
exploration, development and production activities, and the
results, costs and timing thereof; timing and receipt of approvals,
consents and permits under applicable legislation; the
geopolitical, economic, permitting and legal climate that we
operate in; the price of gold and other commodities; exchange
rates; market competition; the adequacy of our financial resources,
and such other material assumptions as are identified in the
Pretivm Disclosure Documents. We have also assumed that no
significant events will occur outside of our normal course of
business. Although we believe that the assumptions inherent in the
forward-looking statements are reasonable as of the date of this
news release, forward-looking statements are not guarantees of
future performance and, accordingly, undue reliance should not be
put on such statements due to the inherent uncertainty therein. We
do not assume any obligation to update forward-looking statements,
whether as a result of new information, future events or otherwise,
other than as required by applicable law. For the reasons set forth
above, prospective investors should not place undue reliance on
forward-looking statements. Neither the TSX nor the NYSE has
approved or disapproved of the information contained herein.
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