Replies to post #43 on Pretivm Resources Inc. (PVG)

[silver100]

Pretium's underwriters exercise $15.08-million option

2011-06-30 10:05 ET - News Release


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Mr. Robert Quartermain reports

PRETIVM ANNOUNCES EXERCISE OF UNDERWRITERS' OPTION ON PREVIOUSLY ANNOUNCED BOUGHT PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

Pretium Resources Inc.'s syndicate of underwriters, led by CIBC, and including BMO Capital Markets and GMP Securities L.P., have exercised the option to purchase an additional 460,000 flow-through shares, pursuant to its previously announced, bought deal financing. Pretivm has agreed to issue, by way of private placement, a total of 1.39 million flow-through common shares of Pretivm, at a price of $10.85 per flow-through share, for total gross proceeds of $15,081,500. 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 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, 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 a total 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.

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