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Tuesday, May 17, 2022

Pretium [NYSE: PVG] to be Acquired by Newcrest

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Pretium Resources Inc. [NYSE: PVG] (“Pretivm” or the “Company”) has inked a binding agreement with Newcrest Mining Limited. As per the binding agreement, Newcrest has agreed to purchase all of the outstanding shares of Pretivm that it does not already own. The acquisition of Pretivm by Newcrest is an excellent opportunity for the Company and its shareholders, employees, First Nations partners, and the local communities in northwest British Columbia.

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The company contemplates that the transaction provides an instant and persuasive premium for Pretivm shareholders that reproduces the excellent work of its employees and contractors in developing and operating the Brucejack gold mine, while also providing an opportunity to take advantage of potential upside as Newcrest shareholders.

Furthermore, Newcrest currently holds nearly 4.8% of Pretivm’s shares. If completed, the Transaction would result in Pretivm shareholders owning nearly 8% of Newcrest, on a fully diluted basis. Newcrest has financial resources and the aim of enhancing the long-term potential of the Brucejack Mine and the district scale opportunities in the surrounding Brucejack property. Moreover, Newcrest and Pretivm have harmonized corporate cultures and values, with a focus on safety, employee development, and ESG.

Financial Overview of Transaction

As per the deal, Pretivm shareholders will have the chance to elect to obtain C$18.50 per Pretivm share in cash or 0.8084 Newcrest shares per Pretivm share. It signifies share consideration of C$18.50 based on the Canadian dollar equivalent of the 5-day volume-weighted-average-price (VWAP) of Newcrest shares on the ASX completed on November 8, 2021. Additionally, it depends on proration to guarantee aggregate cash and Newcrest share payment each representing 50% of total transaction consideration.

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