History
Pretivm refinanced the debt on its Brucejack gold mine, reported high-grade drilling and a new discovery, then was acquired by Newcrest Mining in March 2022.
2018-2020: Refinancing Brucejack
Pretium Resources, which called itself Pretivm, owned the Brucejack Mine, a high-grade underground gold mine in northwestern British Columbia. Commercial production there began in 2017. Over 2018 the number of shares on issue edged up from 182,337,874 to 184,163,091, though the record does not say why.
The main event of the period was in December 2018. Pretivm closed a US$480 million loan facility, made up of a US$250 million term loan and a US$230 million revolving credit line (money that can be borrowed, repaid and borrowed again), maturing in December 2022. It replaced the credit facility used to build the mine. Pretivm also spent US$237 million buying back the callable 8% gold and silver stream, which it had sold as part of the construction financing. The new facility allowed share buybacks and cash dividends from 2020, subject to financial covenants. The record is then quiet until 2021.
2021: Drilling success and a new discovery
In February 2021 Pretivm reported its first resource expansion drilling at Brucejack since commercial production began. In the North Block Zone, next to the Valley of the Kings deposit, Phase 1 (38 holes) found gold up to 300 meters from the current resource shell, including 2,590 g/t over 1.0 meter. Phase 3, reported in September (85 holes), found seven intersections above 1,000 g/t, reaching up to 450 meters from the shell. An updated resource estimate was expected in the first half of 2022.
In August the company amended its credit facility to US$350 million, made up of a US$100 million term loan and a US$250 million revolver, now maturing in August 2025. In October it announced a new gold discovery at the Golden Marmot Zone, 3.5 km north of Valley of the Kings, where eight of the first nine holes found gold, including 72.5 g/t over 53.5 meters. Results from the remaining 17 holes of the 2021 program were still to come.
2021-2022: Sale to Newcrest
On November 9, 2021, Pretivm agreed to be acquired by Newcrest Mining Limited for about C$3.5 billion fully diluted. Shareholders could choose C$18.50 in cash or 0.8084 Newcrest shares per share, with proration so that cash and shares each made up half of the total. The price was a 23% premium to the previous closing price. A C$125 million termination fee was payable by Pretivm in certain cases.
Securityholders approved the deal with 95.48% of votes cast on January 20, 2022, and the court gave its final order on January 27. Investment Canada Act approval on February 25 was the last regulatory step. The acquisition was completed on March 9, 2022.
Elections covered about 50.51% of shares, so proration applied. Holders who elected all cash received about C$10.81 plus 0.3357 Newcrest shares per share, all-share electors received 0.8084 Newcrest shares, and those who did not elect received C$9.25 plus 0.4042 Newcrest shares. As of March 9, 2022, trading in the shares was suspended, TSX delisting was expected around March 11, and Pretivm had applied to stop being a reporting issuer.
Written from the 9 story beats below (2018 to 9 Mar 2022), which come from the company's own announcements and filings.