— Photo courtesy Pretivm Resources Inc. VANCOUVER, British Columbia, Sept. 24, 2018 (GLOBE NEWSWIRE) -- Pretium Resources Inc. (TSX/NYSE:PVG) (“Pre
— Photo courtesy Pretivm Resources Inc.
VANCOUVER, British Columbia, Sept. 24, 2018 (GLOBE NEWSWIRE) -- Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) is pleased to report that it has delivered notice electing to repurchase 100% of the callable 8% gold and silver stream at the end of 2018. The stream was sold by Pretivm as part of the construction financing package for the Brucejack Mine.
“Our quarter over quarter cash build since start-up has allowed us to elect to repurchase the precious metals stream without having to consider equity,” said Joseph Ovsenek, President and CEO of Pretivm. “With more than 339,000 ounces of gold produced at the Brucejack Mine in the first year of operation, Pretivm is now established as a low-cost, intermediate gold producer.”
Repurchase Precious Metals Stream
An agreement to sell the precious metals stream for US$150 million was part of the construction financing package for the development of the underground Brucejack Mine (see news release dated September 15, 2015). The Company has delivered notice of its election to repurchase 100% of the precious metals stream for US$237 million by December 31, 2018 to the holders of the stream.
Refinance of Credit Facility
The Brucejack Mine construction financing package also included a US$350 million credit facility accruing interest at a rate of 7.5% and due December 31, 2018. The Company has the option to extend the maturity date of the credit facility to December 31, 2019 on payment of 2.5% of the principal and accrued interest by December 31, 2018. The Company is evaluating proposals to refinance the credit facility by year end.
Other 2018 Activities
H2 2018 Production and Cost Guidance
We continue to refine and update the grade control model with the benefit of data from ongoing production. To date, the updated grade control model is reconciling well to mill production. As a result, the Company anticipates meeting production guidance of 200,000 to 220,000 ounces of gold and all-in sustaining cost guidance of $710 to $770 per ounce gold sold for the second half of 2018, with production weighted more heavily in the fourth quarter than the third quarter.
Reconciliation of the global resource model for the Valley of the Kings against mill production for 2018 is anticipated in early 2019.
Permitting
The approval process to increase the permitted production rate at Brucejack to 3,800 tonnes per day from 2,700 tonnes per day is on track, with a decision expected later this year.
Grass-roots Exploration
Grass-roots exploration in the Bowser claims located approximately 20 kilometers to the southeast of the Brucejack Mine is ongoing, with two drills turning. Assays and results from the program are anticipated later in the Fall.
Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief Geologist, Pretium Resources Inc. is the Qualified Person (“QP”) responsible for Brucejack Mine geological reconciliation.
About Pretivm
Pretivm is a low-cost intermediate gold producer with the high-grade underground Brucejack Mine in northern British Columbia.
MONTREAL, Sept. 24, 2018 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (“Osisko”) (OR: TSX & NYSE) announces today that Osisko Bermuda Limited (“OBL”), a wholly owned subsidiary of Osisko, has received a notice from Pretium Exploration Inc., a subsidiary of Pretium Resources Inc. (collectively “Pretium”) in regards to its election to exercise its option to fully repurchase OBL’s interest in the Brucejack gold and silver stream, as provided for in the purchase and sale agreement between the parties dated September 15, 2015 (the “Stream Agreement”).
Under the Stream Agreement, Pretium had an option to repurchase 100% of OBL’s share of the Brucejack gold and silver stream by making a payment of US$118,500,000 (approximately C$154,000,000) to OBL on December 31, 2018. In order to exercise this option, Pretium had to provide 90 days’ prior written notice to OBL, at which point the stream repurchase becomes a binding obligation on behalf of Pretium (“Stream Repurchase”).
Osisko expects to use the proceeds from the Stream Repurchase for debt repayment and to fund additional investments.
The Stream Repurchase does not affect Osisko’s 2018 gold equivalent ounce production guidance of 77,500 to 82,500 gold equivalent ounces. Osisko continues to retain exposure to the Brucejack mine through its 50% gold offtake interest.
About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 130 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by five cornerstone assets, including a 5% NSR royalty on the Canadian Malartic Mine, which is the largest gold mine in Canada. Osisko also owns a portfolio of publicly held resource companies, including a 17.2% interest in Osisko Mining Inc., a 12.6% interest in Falco Resources Ltd. and a 34.7% interest in Barkerville Gold Mines Ltd.
Forward looking statements apply
