Pretium Resources announce that Zijin Mining Group Co Ltd has agreed to make a strategic investment in the company which will result in Zijin owning approximately 9.9% of Pretivm.

The company has agreed to issue to Zijin by way of a private placement, common shares for gross proceeds of approximately Can$80.872 million.

Zijin is a Shanghai and Hong Kong listed company with extensive interests across a broad range of commodities and continents, and is the largest gold producer in China.

The offering constitutes a significant portion of the planned equity component of the financing required to bring Pretivm’s Brucejack Gold Project in northern British Columbia, Canada, into production. Pretivm intends to use the proceeds to fund capital expenditures including the procurement of long-lead items and camp infrastructure. The permitting process for a 2700 tonne-per-day underground mine at Brucejack is under way.

“Zijin’s investment positions us well at a critical stage in our advance to production,” says Pretivm’s CEO Robert Quartermain. “Zijin is a well-capitalized shareholder, and as fellow shareholders, we value their long-term outlook and commitment to gold and to the successful development of our Brucejack project as a high-grade gold mine.”

The offering is scheduled to close on or about January 16, 2015, subject to regulatory approvals and approvals from the Chinese government or its relevant authorized departments.

Pursuant to the subscription agreement, Zijin will be entitled to nominate one person to be appointed to the Board of Directors of Pretivm and will have a pre-emptive right to participate in any future equity financings of Pretivm to maintain its approximately 9.9% interest.

Based on the results of the June 2014 feasibility study, Brucejack is expected to produce an average of 504,000 ounces of gold a year over the first 8 years and 404,000 ounces of gold a year over the 18-year mine life. Commercial production at Brucejack is targeted for 2017.

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