Newcrest buys Pretium Resources for $2.8 billion

Australia's Newcrest Mining has agreed to buy all the outstanding common shares that Pretium Resources does not yet own for $2.8 billion.

Pretivm's board shareholders voted unanimously for the deal and signed a voting agreement for all Pretivm shares they control. Pretivm is the owner of the Bruce Jack business in the promising Golden Triangle in British Columbia, Canada.

Last month, Pretium discovered new high-grade gold in the Golden Marmot area of the Brucejack mine, 3.5km north of its Imperial Valley deposit.

The company said it had received test results from the first nine boreholes, eight of which intersected with gold, with a focus on 53.5m gold with a grade of 72.5g per tonne, of which 50cm was 6700 grams per tonne of gold and 3990 grams per tonne of silver.

Bruce Jack, which started commercial production in July 2017, is one of the highest-grade operational gold mines in the world. Pretivm's technical report of March 9, 2020 estimated annual gold production at 311koz over the projected 13-year mine life, at a total maintenance cost of $743 per ounce of gold.

The mining rights in and around Brucejack are located in the traditional territories claimed by Tsetsaut Skii km Lax Ha (TSKLH) and Tahltan Nation, as well as the Nisga'a Nass area as defined in the final agreement of Nisga'a.

Brucejack is approximately 140km from the Red Chris mine, which is majority owned and operated by Newcrest, which is located in Tahltan territory. Upon completion of the deal, Newcrest will become the operator and 100% owner of Bruce Jack, with a current target for the first quarter of 2022.

"We are pleased to be able to expand our business in this promising area of British Columbia. Brucejack is a first-tier mine in first-tier jurisdictions that will provide Newcrest with just-in-time production, free cash flow and revenue diversification and will seamlessly integrate into our long-life, low-cost portfolio, "Sandeep Biswas, chief executive of Newcrest, said in a media release.

"the merger of Newcrest and Pretivm will create a leading gold miner in the Golden Triangle in British Columbia, operating both Brucejack and Red Chris mines," Biswas said.