Australian miner Newcrest Mining has inked an agreement to acquire the remaining shares that it does not already own of Canadian miner Pretium Resources. The deal, which has already been recommended unanimously by Pretium’s board, is valued at US$2.8 billion.
Pretium is the owner of the high-grade gold mine Brucejack in British Columbia, Canada. With production of 348,000 ounces in 2020, the operation is considered a Tier 1 asset and will offer an instant boost to Newcrest’s gold production by more than 300,000 oz., or about 15%, to more than 2 Moz.
Additionally, the deal offers Newcrest growth in a region where it already operates and has strong existing relationships, officials said, and provides it with significant exploration opportunities. In fact, Brucejack is just 140 kilometers from Newcrest’s majority-owned and operated Red Chris mine on Tahltan territory.
Following this transaction, Newcrest will have exposure to six Tier 1 orebodies and a portfolio of organic growth options of unrivalled quality, it said.
The completion of the transaction is expected to close during the first quarter of 2022.
Source: Newcrest Mining