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VANCOUVER, Dec. 21 /CNW/ - Pretium Resources Inc. (Pretium) is pleased to announce that it closed its initial public offering of common shares (Offering) and the acquisition of the Snowfield Project and Brucejack Project from Silver Standard Resources Inc. (Silver Standard).
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 for the Offering was led by CIBC, Citigroup Global Markets Canada Inc. and UBS Securities Canada Inc., and also includes BMO Capital Markets, Credit Suisse Securities (Canada), Inc., Dahlman Rose & Company, LLC, GMP Securities L.P. and Salman Partners Inc.
Pretium's common shares will commence trading on the Toronto Stock Exchange under the symbol "PVG" at the opening of trading today.
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 from Silver Standard. 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.
Mr Quartermain, President and CEO of Pretium remarked, "We are very pleased to come to market with two significant gold projects: the Snowfield and Brucejack Projects in northern British Columbia. Our first priority will be to incorporate the 51,100 meters of diamond drilling completed in 2010 into the Combined Project resources, and have already started planning our 2011 exploration program to follow up on the high grade gold intercepts encountered in 2009 and 2010 in the Brucejack area. We believe 2011 will be a very exciting year for Pretium and its shareholders."
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to United States persons absent registration or any applicable exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell, or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Pretium Resources
Pretium is a start-up company that intends to acquire, explore and develop gold and precious metals resource properties, initially in the Americas. Pretium acquired from Silver Standard the Snowfield and Brucejack pre-development gold resource projects in northern British Columbia, Canada. Pretium's principal objectives are to advance the Snowfield Project and the Brucejack Project to feasibility and to explore for and acquire other precious metals resource properties. Pretium's overall strategy is to position itself as a leading gold and precious metals exploration company.
Forward Looking Statement
This Press Release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information may include, but is not limited to, anticipated production and developments in our operations in future periods, our planned exploration and development activities, costs and timing of development of the Snowfield and Brucejack Projects, costs and timing of future exploration, results of future exploration and drilling, and adequacy of financial resources. Wherever possible, words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipate" or "does not anticipate", "believe", "intend" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information.
Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "potential" or variations thereof, or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, those risks identified in Pretium's final prospectus filed on SEDAR at www.sedar.com.
Forward-looking information is based on the expectations and opinions of Pretium's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. We do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.
For further information: For further information:
Pretium Resources Inc.
#2300 - 1066 West Hastings Street
Vancouver, British Columbia
Robert Quartermain, President