Exhibit 99.1
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December 17,
2020
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News Release
20-24
|
Pretivm Closes Sale of Snowfield Property to Seabridge
Vancouver, British Columbia, December 14, 2020; Pretium Resources Inc. (TSX/NYSE: PVG) (“Pretivm” or the
“Company”) announces that it, along with its
wholly-owned subsidiary, Pretium Exploration Inc., has closed the
previously announced sale (the “Transaction”) of the
Snowfield property (“Snowfield”) to KSM Mining ULC
(“KSM Mining”), a wholly-owned subsidiary of Seabridge
Gold Inc. (“Seabridge”).
Under the terms of the Agreement, Pretivm has received US$100
million in cash, and will receive further consideration comprised
of the following:
●
A
1.5% net smelter royalty in respect to all production from
Snowfield (the “NSR Royalty”).
●
A
US$20 million contingent cash payment (the “Deferred
Payment”) payable within six months of the earlier of KSM
Mining (or a parent company) completing a bankable feasibility
study which includes production of reserves from Snowfield or the
commencement of commercial production from Snowfield or any part of
Snowfield. US$15 million of the Deferred Payment represents an
advance NSR Royalty payment and shall offset amounts payable under
the NSR Royalty.
“The divestment surfaces immediate value for a non-core asset
and accelerates our plans to deleverage our balance sheet,”
said Jacques Perron, President and Chief Executive Officer of
Pretivm. “Combining Snowfield with Seabridge’s other
assets creates synergies of scale that improves the likelihood it
will reach production and the royalty ensures our participation in
that long-term success.”
The cash proceeds of the Transaction will be applied to the
revolving portion of Pretivm’s credit facility, which as of
September 30, 2020 had an outstanding principal balance of US$198.0
million.
The transaction will result in a non-cash impairment loss to be
recorded in the fourth quarter of 2020. Complete financial results, including the
non-cash impairment loss will be disclosed in the Company’s
fourth quarter 2020 operational and financial results. As of
September 30, 2020, the book value of Snowfield was US$232.1
million.
About Pretivm
Pretivm is an intermediate gold producer with the high-grade gold
underground Brucejack Mine.
For further information contact:
Troy Shultz
Manager,
Investor Relations &
Corporate Communications
Pretium Resources Inc.
Suite 2300, Four Bentall Centre, 1055 Dunsmuir Street
PO
Box 49334 Vancouver, BC V7X 1L4
(604)
558-1784
invest@pretivm.com
(SEDAR filings: Pretium Resources Inc.)
Regarding Forward-Looking Statements
This news release contains “forward-looking
information” and “forward looking statements”
within the meaning of applicable Canadian and United States
securities legislation (collectively herein referred to as
“forward-looking information”), including the
“safe harbour” provisions of Canadian provincial
securities legislation and the U.S. Private Securities Litigation
Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act
of 1934, as amended, and Section 27A of the U.S. Securities Act of
1933, as amended. Wherever possible, words such as
“plans”, “expects”, “guidance”,
“projects”, “assumes”,
“budget”, “strategy”,
“scheduled”, “estimates”,
“forecasts”, “anticipates”,
“believes”, “intends”,
“modeled”, “targets” and similar
expressions or statements that certain actions, events or results
“may”, “could”, “would”,
“might” or “will” be taken, occur or be
achieved, or the negative forms of any of these terms and similar
expressions, have been used to identify forward-looking
information. Forward-looking information may include but is not
limited to the Agreement and its terms, the Transaction, including
consideration to Pretivm and the timing thereof, the planned use of
proceeds from the Transaction, and the effects of the Transaction
on Pretivm’s financial condition, liquidity and capital
resources, and financial statements and financial results.
Forward-looking information is subject to a variety of known and
unknown risks, uncertainties and other factors that could cause
actual results, actions, events, conditions, performance or
achievements to materially differ from those expressed or implied
by the forward-looking information including, without limitation,
developments with respect to the COVID-19 pandemic, including the
duration, severity and scope of the pandemic and the potential
impacts thereof; significant governmental regulations, including
environmental regulations; non-compliance with permits that are
obtained or delay in obtaining or renewing, or failure to obtain or
renew permits required in the future; compliance with emerging
climate change regulation and the detrimental effects of climate
change; potential opposition from non-governmental organizations;
uncertainty regarding unsettled First Nations rights and title in
British Columbia; uncertainties related to title to our mineral
properties and surface rights; land reclamation and mine closure
requirements; the potential impact of the consummation of the
Transaction on relationships, including with regulatory bodies and
local communities; and such other risks as identified in our public
disclosure documents as filed in Canada on SEDAR at www.sedar.com
and in the United States through EDGAR at the Security and Exchange
Commission’s (the “SEC”) website at www.sec.gov
(collectively, the “Pretivm Disclosure Documents”). Our
forward-looking information is based on the assumptions, beliefs,
expectations and opinions of management on the date the statements
are made, including, without limitation, future price of gold and
silver and other metal prices; the accuracy of our Mineral Resource
and Mineral Reserve estimates and related information, analyses and
interpretations; timing and receipt of governmental, regulatory and
third party approvals, consents, licenses and permits; obtaining
required renewals for existing approvals, consents, licenses and
permits; the geopolitical, economic, permitting and legal climate
that we operate in; the adequacy of our financial resources;
commodity prices; currency exchange rates and interest rates;
political and regulatory stability; requirements under applicable
laws; market competition; positive relations with local groups;
favourable equity and debt capital markets; stability in financial
capital markets; the impact of the COVID-19 pandemic; and such
other assumptions as set out in the Pretivm Disclosure Documents.
Forward-looking information is not a guarantee of future
performance. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Forward-looking information involves statements about
the future and is inherently uncertain, and our actual achievements
or other future events or conditions may differ materially from
those reflected in the forward-looking information due to a variety
of risks, uncertainties and other factors. 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,
readers should not place undue reliance on forward-looking
information. Neither the TSX nor the NYSE has approved or
disapproved of the information contained herein.