Pretium Resources closes $265 million IPO and acquisition of Snowfield and Brucejack Project from Silver Standard Resources
On December 21, 2010, Pretium Resources Inc. announced that it had closed its initial public offering of common shares and the acquisition of the Snowfield Project and Brucejack Project from Silver Standard Resources Inc.
Under the offering, Pretium issued 44,170,000 common shares at a price of $6.00 per share for gross proceeds to Pretium of $265,020,000. The distribution of the common shares under the offering was qualified by way of prospectus dated December 9, 2010 filed with the securities regulatory authorities in each of the provinces and territories of Canada, other than Québec. The underwriting syndicate was led by CIBC, Citigroup Global Markets Canada Inc. and UBS Securities Canada Inc., and also included BMO Capital Markets, Credit Suisse Securities (Canada), Inc., Dahlman Rose & Company, LLC, GMP Securities L.P. and Salman Partners Inc.
Pretium's common shares commenced trading on the Toronto Stock Exchange under the symbol "PVG" at the opening of trading on December 21.
Pretium used $215,020,000 of the proceeds raised under the offering to fund the cash portion of the acquisition of the Snowfield Project and the Brucejack Project. The remaining net proceeds from the offering will be used to fund the prefeasibility engineering studies and continuing exploration of the Snowfield Project, the Brucejack Project or the Combined Project (defined as the Snowfield Project and Brucejack Project together), to fund the acquisition and exploration of other gold and precious metal projects and for general corporate purposes.
Pretium intends to acquire, explore and develop gold and precious metals resource properties, initially in the Americas.
Pretium was advised in both the IPO and the acquisition by Fasken Martineau with a Vancouver team that included Josh Lewis, Georald Ingborg, Amanda MacAdams, Johanna Fipke, Caroline Clapham, Stephanie Sanger, Bruce Harrison, Mark Hawkins and Barinder Sidhu (corporate/securities), and Frank Schober (tax) assisted by Ron Nobrega (tax) in Toronto.