Pretivm Closes Sale of Snowfield Property to Seabridge
December 17 2020 - 8:00AM
Pretium Resources Inc. (TSX/NYSE: PVG) (“Pretivm” or the “Company”)
announces that it, along with its wholly-owned subsidiary, Pretium
Exploration Inc., has closed the previously announced sale (the
“Transaction”) of the Snowfield property (“Snowfield”) to KSM
Mining ULC (“KSM Mining”), a wholly-owned subsidiary of Seabridge
Gold Inc. (“Seabridge”).
Under the terms of the Agreement, Pretivm has
received US$100 million in cash, and will receive further
consideration comprised of the following:
- A 1.5% net smelter
royalty in respect to all production from Snowfield (the “NSR
Royalty”).
- A US$20 million
contingent cash payment (the “Deferred Payment”) payable within six
months of the earlier of KSM Mining (or a parent company)
completing a bankable feasibility study which includes production
of reserves from Snowfield or the commencement of commercial
production from Snowfield or any part of Snowfield. US$15 million
of the Deferred Payment represents an advance NSR Royalty payment
and shall offset amounts payable under the NSR Royalty.
“The divestment surfaces immediate value for a
non-core asset and accelerates our plans to deleverage our balance
sheet,” said Jacques Perron, President and Chief Executive Officer
of Pretivm. “Combining Snowfield with Seabridge’s other assets
creates synergies of scale that improves the likelihood it will
reach production and the royalty ensures our participation in that
long-term success.”
The cash proceeds of the Transaction will be
applied to the revolving portion of Pretivm’s credit facility,
which as of September 30, 2020 had an outstanding principal balance
of US$198.0 million.
The transaction will result in a non-cash
impairment loss to be recorded in the fourth quarter of 2020.
Complete financial results, including the non-cash impairment loss
will be disclosed in the Company’s fourth quarter 2020 operational
and financial results. As of September 30, 2020, the book value of
Snowfield was US$232.1 million.
About Pretivm
Pretivm is an intermediate gold producer with
the high-grade gold underground Brucejack Mine.
For further information contact:
Troy ShultzManager, 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.)
Regarding Forward-Looking Statements
This news release contains “forward-looking
information” and “forward looking statements” within the meaning of
applicable Canadian and United States securities legislation
(collectively herein referred to as “forward-looking information”),
including the “safe harbour” provisions of Canadian provincial
securities legislation and the U.S. Private Securities Litigation
Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act
of 1934, as amended, and Section 27A of the U.S. Securities Act of
1933, as amended. 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 information. Forward-looking
information may include but is not limited to the Agreement and its
terms, the Transaction, including consideration to Pretivm and the
timing thereof, the planned use of proceeds from the Transaction,
and the effects of the Transaction on Pretivm’s financial
condition, liquidity and capital resources, and financial
statements and financial results. Forward-looking information is
subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual results, actions, events,
conditions, performance or achievements to materially differ from
those expressed or implied by the forward-looking information
including, without limitation, developments with respect to the
COVID-19 pandemic, including the duration, severity and scope of
the pandemic and the potential impacts thereof; significant
governmental regulations, including environmental regulations;
non-compliance with permits that are obtained or delay in obtaining
or renewing, or failure to obtain or renew permits required in the
future; compliance with emerging climate change regulation and the
detrimental effects of climate change; potential opposition from
non-governmental organizations; uncertainty regarding unsettled
First Nations rights and title in British Columbia; uncertainties
related to title to our mineral properties and surface rights; land
reclamation and mine closure requirements; the potential impact of
the consummation of the Transaction on relationships, including
with regulatory bodies and local communities; and such other risks
as identified in our public disclosure documents as filed in Canada
on SEDAR at www.sedar.com and in the United States through EDGAR at
the Security and Exchange Commission’s (the “SEC”) website at
www.sec.gov (collectively, the “Pretivm Disclosure Documents”). Our
forward-looking information is based on the assumptions, beliefs,
expectations and opinions of management on the date the statements
are made, including, without limitation, future price of gold and
silver and other metal prices; the accuracy of our Mineral Resource
and Mineral Reserve estimates and related information, analyses and
interpretations; timing and receipt of governmental, regulatory and
third party approvals, consents, licenses and permits; obtaining
required renewals for existing approvals, consents, licenses and
permits; the geopolitical, economic, permitting and legal climate
that we operate in; the adequacy of our financial resources;
commodity prices; currency exchange rates and interest rates;
political and regulatory stability; requirements under applicable
laws; market competition; positive relations with local groups;
favourable equity and debt capital markets; stability in financial
capital markets; the impact of the COVID-19 pandemic; and such
other assumptions as set out in the Pretivm Disclosure Documents.
Forward-looking information is not a guarantee of future
performance. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Forward-looking information involves statements about
the future and is inherently uncertain, and our actual achievements
or other future events or conditions may differ materially from
those reflected in the forward-looking information due to a variety
of risks, uncertainties and other factors. We do not assume any
obligation to update forward-looking information, whether as a
result of new information, future events or otherwise, other than
as required by applicable law. For the reasons set forth above,
readers should not place undue reliance on forward-looking
information. Neither the TSX nor the NYSE has approved or
disapproved of the information contained herein.
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