Gold miner Newcrest Mining (ASX:NCM) has entered into an agreement to acquire all shares in Pretium Resources that it does not already own by way of a Canadian plan of arrangement.
Under the offer, Pretivm shareholders would receive a consideration of $C18.50 per share, valuing the company at $C3.5 billion ($3.8 billion). Pretivm is the owner of the Brucejack operation in the Golden Triangle region of British Columbia, Canada.
Pretivm’s board of directors have unanimously recommended that Pretivm shareholders vote in favour of the transaction and have entered into voting support agreements with respect to all of the Pretivm shares that they own or control. Newcrest already owns a 4.8 per cent stake in Pretivm.
Newcrest will become the operator and 100 per cent owner of Brucejack, following completion of the transaction which is currently targeted for the first quarter of next year.
“We are delighted to be expanding our presence in this highly prospective region in British Columbia. Brucejack is a Tier 1 mine in a Tier 1 jurisdiction and will deliver immediate production, free cash flow and earnings diversification to Newcrest and will fit seamlessly into our long life, low cost portfolio,” said CEO Sandeep Biswas.
“Following this transaction Newcrest will have exposure to six Tier 1 orebodies and a portfolio of organic growth options of unrivalled quality. The transaction will also drive a material increase in Mineral Resources, Ore Reserves and annual gold production.”
“The combination of Newcrest and Pretivm will create the leading gold miner in British Columbia’s Golden Triangle, operating both the Brucejack and Red Chris mines. Both companies share similar philosophies with respect to safety, the environment, developing their people, engaging with local communities and investing for growth.”
Shares in Newcrest Mining (ASX:NCM) are trading 1.1 per cent lower at $25.07.