Pretium arranges $40-million Liberty private placement
2013-04-23 03:15 ET - News Release
Mr. Robert Quartermain reports
PRETIVM ANNOUNCES STRATEGIC INVESTMENT BY LIBERTY METALS & MINING
Pretium Resources Inc. has entered into a subscription agreement with Liberty Metals & Mining Holdings LLC, a subsidiary of Boston-based Liberty Mutual Insurance, to issue to LMM by way of a private placement 5,780,346 common shares of Pretium at a price per share of $6.92 for gross proceeds of approximately $40-million. The purchase price is based on the volume-weighted average price of Pretium's common shares on the Toronto Stock Exchange for the 20 trading days ended April 19, 2013. The offering is scheduled to close on or about April 26, 2013, subject to regulatory approvals.
Pretium intends to use the proceeds of the offering to finance work at its Brucejack project, including the completion of the planned 10,000-tonne bulk sample and underground drilling program at the Valley of the Kings, permitting activities, and the acceleration of other activities which will advance the high-grade gold Valley of the Kings into development.
Pursuant to the subscription agreement, LMM will be entitled to nominate one person to be appointed to the board of directors of Pretium and will have a pre-emptive right to participate in any future equity financings of Pretium.
LMM is not permitted to trade the purchased shares for a period of four months plus one day from the closing of the offering.
We seek Safe Harbor.
