Pretium Resources Inc. (PVG:TSX; PVG:NYSE) reported that it has delivered notice electing to repurchase 100% of the callable 8% gold and silver stream at the end of the year. The stream was sold by the company as part of the construction financing package for the Brucejack Mine in British Columbia.
"Our quarter over quarter cash build since start-up has allowed us to elect to repurchase the precious metals stream without having to consider equity," said Joseph Ovsenek, president and CEO of Pretium. "With more than 339,000 ounces of gold produced at the Brucejack Mine in the first year of operation, Pretium is now established as a low-cost, intermediate gold producer."
Pretium Resources has delivered notice of its election to repurchase 100% of the precious metals stream for $237 million by December 31, 2018 to the holders of the stream. The stream was originally sold for $150 million in 2015.
In addition, the financing package of the Brucejack Mine included a "$350 million credit facility accruing interest at a rate of 7.5% and due December 31, 2018." Pretium "has the option to extend the maturity date of the credit facility to December 31, 2019 on payment of 2.5% of the principal and accrued interest by December 31, 2018". The company noted that it is "evaluating proposals to refinance the credit facility by year end."
Pretium also noted that it anticipates meeting production guidance of 200,000 to 220,000 ounces of gold at all-in sustaining costs of $710 to $770 for the second half of 2018. It has applied to increase Brucejack's permitted production rate from 2,700 tonnes per day to 3,800 tonnes per day and expects a decision later this year.
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