Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
is pleased to report that it has closed the previously announced
US$480 million debt facility (the “Loan Facility”) to refinance its
existing construction credit facility. Additionally, the Company
has repurchased 100% of the callable 8% gold and silver stream that
was sold as part of the construction financing package for the
development of the Brucejack Mine.
“With the refinancing of our construction credit
facility and the repurchase of the precious metals stream, we have
accomplished all of the objectives we set for ourselves at the
start of this year, including the achievement of steady state gold
production and the receipt of permit amendments to increase
production to 3,800 tonnes per day,” said Joseph Ovsenek, President
and CEO of Pretivm. “The ability to achieve these objectives
in less than six quarters of production in a declining gold
environment speaks to the quality of our team and profitability of
Brucejack.”
The Loan Facility comprises 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 Term and Revolving Facilities are available
by way of (i) US dollar LIBOR loans, with an interest rate ranging
from 2.50% to 3.50% over LIBOR (currently one month LIBOR is
approximately 2.5 %), based on the Company’s net leverage ratio, or
(ii) US dollar base rate loans with an interest rate ranging from
1.50% to 2.50% over the administrative agent’s base rate. The
Revolving Facility is also available in various other forms,
including letters of credit and in Canadian dollars.
The Term Facility will be repaid in equal
quarterly installments of principal and accrued interest starting
at the end of second quarter of 2019. The Revolving Facility will
reduce to US$200 million in June 2019 and shall be repayable as a
bullet (principal and accrued interest) on the maturity date. Any
unused portion of the Revolving Facility will be subject to a
customary standby fee. The Loan Facility will mature December
2022.
The Loan Facility includes standard and
customary finance terms and conditions including with respect to
fees, representations, warranties, and covenants and provides for
share repurchases and/or cash dividends starting in 2020 (subject
to compliance with certain financial covenants). The Joint Lead
Arrangers are The Bank of Nova Scotia, SG Americas Securities, LLC
and ING Capital LLC.
In conjunction with the closing of the Loan
Facility, the Company has executed on the previously announced
notice to repurchase 100% of the callable 8% gold and silver stream
for US$237 million (see news release dated September 24,
2018).
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:
Joseph
Ovsenek |
Troy Shultz |
President &
CEO |
Manager, Investor
Relations & |
|
Corporate
Communications |
Pretium Resources Inc.Suite 2300, Four Bentall Centre, 1055
Dunsmuir StreetPO Box 49334 Vancouver, BC V7X 1L4(604)
558-1784invest@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, and use of
proceeds; 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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