Pretium Announces Bought Private Placement Of Flow-Through Shares
ccnm
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2012) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRE SERVICES
Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm" or the "Company") is pleased to announce that it has entered into a bought deal agreement with a syndicate of underwriters led by Salman Partners Inc. (the "Underwriters"), to issue by way of private placement 1,000,000 flow-through common shares ("Flow-Through Shares") of Pretivm at a price of $18.00 per Flow-Through Share for aggregate gross proceeds of $18.0 million (the "Offering"). The Offering is scheduled to close on or about August 24, 2012, subject to regulatory approvals.
The gross proceeds of the Offering will be used to expand the 2012 Brucejack Exploration Program with 100,000 meters of drilling planned, predominantly in the Valley of the Kings. The gross proceeds of the Offering will be used during the 2012 exploration program to incur eligible Canadian Exploration Expenses ("CEE") that will qualify as "flow through mining expenditures", as defined in subsection 127(9) of the Income Tax Act (Canada), and "BC flow-through mining expenditures", as defined in the Income Tax Act (British Columbia), (the "Qualifying Expenditures"), which will be renounced to the subscribers with an effective date no later than December 31, 2012. In the event the Company is unable to renounce Qualifying Expenditures effective on or prior to December 31, 2012 to the initial purchasers of Flow-Through Shares in an aggregate amount not less than the gross proceeds raised from the issue of the Flow-Through Shares or such expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each Flow-Through Share subscriber for the additional taxes payable by such subscriber as a result of the Company's failure to renounce the Qualifying Expenditures as agreed.
The Underwriters have been granted an option to purchase, or arrange for substituted purchasers for, up to an additional 150,000 Flow-Through Shares at the issue price at any point up until 48 hours prior to closing of the Offering.
The Flow-Through Shares will be offered to accredited investors in all Provinces of Canada pursuant to applicable securities laws. Subscribers under the Offering will not be permitted to trade the Flow-Through Shares for a period of four months plus one day from the closing of the offering. The Flow-Through Shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. |
