Pretivm Announces Bought Private Placement of Flow-Through Shares
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2012) - Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) -
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Pretium Resources Inc. ("Pretivm" or the "Company") is pleased to announce that it has entered into a bought deal agreement with a syndicate of underwriters led by Salman Partners Inc. (the "Underwriters"), to issue by way of private placement 1,000,000 flow-through common shares ("Flow-Through Shares") of Pretivm at a price of $18.50 per Flow-Through Share for aggregate gross proceeds of $18.5 million (the "Offering"). The Offering is scheduled to close on or about February 14, 2012, subject to regulatory approvals.
The gross proceeds of the Offering will be used to accelerate exploration of the Valley of the Kings Zone with infill and expansion drilling in support of a feasibility study on the high-grade opportunity at the Brucejack Project anticipated to be completed by year-end. The gross proceeds of the Offering will be used during the 2012 exploration program to incur eligible Canadian Exploration Expenses ("CEE") that will qualify as "flow-through mining expenditures", as defined in subsection 127(9) of the Income Tax Act (Canada), and "BC flow-through mining expenditures", as defined in the Income Tax Act (British Columbia), (the "Qualifying Expenditures"), which will be renounced to the subscribers with an effective date no later than December 31, 2012. In the event the Company is unable to renounce Qualifying Expenditures effective on or prior to December 31, 2012 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 Flow-Through Share 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 an option to purchase, or arrange for substituted purchasers for, up to an additional 250,000 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 United States absent registration or an applicable exemption from the registration requirements of such Act.
About Pretivm
Pretivm is creating value through gold at its advanced-staged exploration projects Brucejack and Snowfield, located in northern British Columbia. Pretivm is advancing the high-grade, underground gold opportunity at Brucejack, which hosts a significant undeveloped high-grade gold resource.
(SEDAR filings: Pretium Resources Inc.)
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