|Brucejack is planned as a high-grade underground mining operation using the long-hole stoping mining method and cemented paste backfill. (Photo courtesy of Pretium Resources)|
Pretium Resources announced in mid-January that China’s Zijin Mining Group has acquired approximately 9.9% of Pretium’s shares for a total of about C$80.9 million. The agreement for the transaction was initially announced in early December 2014. Pretium intends to use the proceeds from the investment to fund capital expenditures, including procurement of long-lead items and camp infrastructure, for its high-grade, underground Brucejack gold-silver project in northern British Columbia.
Permitting for the 2,700-mt/d Brucejack mine is currently in progress.
“Zijin’s investment positions us well at a critical stage in our advance to production,” Pretium CEO Robert Quartermain said. “Zijin is a well-capitalized shareholder, and as fellow shareholders, we value their long-term outlook and commitment to gold and to the successful development of our Brucejack project.”
Pursuant to the subscription agreement, Shaoyang Shen of Zijin will be appointed to Pretium’s board of directors, and Zijin will have a pre-emptive right to participate in any future equity financings of Pretium to maintain its approximately 9.9% interest.
Based on the results of a June 2014 feasibility study, Brucejack is expected to produce an average of 504,000 oz/y of gold over its first eight years of production and 404,000 oz/y over an 18-year mine life (E&MJ, July 2014, p. 8).
Zijin is China’s largest gold producer, its second largest copper producer, and a significant producer of zinc, tungsten and iron ore. The company trades on the Shanghai and Hong Kong stock exchanges and has a market capitalization of more than $9 billion.