Pretium removes its offtake
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(Kitco News) - With its "robust" cashflow, Pretium Resources (NYSE:PVG) said today that it has repurchased 100% of its gold offtake.
The B.C. gold miner also reduced debt, said Joseph Ovsenek, president and CEO of Pretium.
"Brucejack's robust cash flow has enabled us to pay down the construction financing package quickly," said Ovsenek. "In 2018, the first year after the start of commercial production, we repurchased 100% of the precious metals stream for $237 million and refinanced the construction credit facility with a $480 million bank debt facility. Now, we are repurchasing 100% of the offtake agreement for roughly $80 million. With the construction financing package cleaned up, we have set our sights on paying off the bank debt facility as rapidly as possible."
The offtake purchasers were Triple Flag Mining Finance Bermuda and Osisko Bermuda Limited.
There is an underground exploration drilling program at Brucejack Mine. The company is trying to confirm potential for a porphyry deposit at depth. Assay results are pending. Pretium also has four drills turning at its Bowser claim east of its Brucejack Mine.