Pretium closes $20.7-million financing
2012-08-24 09:39 ET - News Release
Mr. Robert Quartermain reports
PRETIVM CLOSES BOUGHT PRIVATE PLACEMENT OF FLOW-THROUGH SHARES
Pretium Resources Inc. has closed its private placement of 1.15 million flow-through common shares of Pretivm at a price of $18 per flow-through share for aggregate gross proceeds of $20.7-million. The offering includes the full exercise of the underwriters' option to purchase an additional 150,000 flow-through common shares pursuant to the previously announced bought deal private placement. The syndicate of underwriters was led by Salman Partners Inc. and included CIBC World Markets Inc., Cormark Securities Inc., GMP Securities LP and Scotia Capital Inc.
The gross proceeds of the offering will be used to expand the 2012 Brucejack exploration program with 100,000 metres of drilling planned, predominantly in the Valley of the Kings. 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 "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, 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 sold 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.
