Pretium completes $23.12-million private placement
2012-02-17 10:30 ET - News Release
Mr. Robert Quartermain reports
PRETIUM CLOSES BOUGHT PRIVATE PLACEMENT OF FLOW-THROUGH SHARES
Pretium Resources Inc. has closed its private placement of 1.25 million flow-through common shares of Pretium at a price of $18.50 per flow-through share for aggregate gross proceeds of $23,125,000.
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 British Columbia 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, 2012. In the event the company is unable to renounce qualifying expenditures effective on or prior to Dec. 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 flow-through shares were offered to accredited investors in all provinces of Canada pursuant to applicable securities laws. Subscribers under the offering are not permitted to trade the flow-through shares for a period of four months plus one day from the closing of the offering.
We seek Safe Harbor.
