Pretium arranges $10-million bought-deal financing
2011-06-29 16:51 ET - News Release
Mr. Robert Quartermain reports
PRETIVM ANNOUNCES BOUGHT PRIVATE PLACEMENT OF FLOW-THROUGH SHARES
Pretium Resources Inc. has entered into a bought-deal agreement with a syndicate of underwriters led by CIBC to issue by way of private placement 930,000 flow-through common shares of Pretivm at a price of $10.85 per flow-through share for aggregate gross proceeds of approximately $10-million. The offering is scheduled to close on or about July 15, 2011, subject to regulatory approvals.
The gross proceeds of the offering will be used to accelerate exploration at Brucejack, so that a feasibility study on the high-grade opportunity at Brucejack can commence on completion of this year's exploration program. The gross proceeds of the offering will be used during the 2011 exploration program to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures, as defined in Subsection 127(9) of the Income Tax Act (Canada), and B.C. flow-through mining expenditures, as defined in the Income Tax Act (British Columbia), which will be renounced to the subscribers with an effective date no later than Dec. 31, 2011. In the event the company is unable to renounce qualifying expenditures effective on or prior to Dec. 31, 2011, to the initial purchasers of flow-through shares in an aggregate amount not less than the gross proceeds raised from the issue of the flow-through shares or such expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber for the additional taxes payable by such subscriber as a result of the company's failure to renounce the qualifying expenditures as agreed.
The underwriters have been granted the option to purchase up to an additional 460,000 flow-through shares at the issue price at any point up until 48 hours prior to closing of the offering.
The flow-through shares will be offered to accredited investors in all provinces of Canada pursuant to applicable securities laws. Subscribers under the offering will not be permitted to trade the flow-through shares for a period of four months plus one day from the closing of the offering.
The flow-through shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933.
We seek Safe Harbor.
