Australia-based Newcrest Mining is acquiring Canada’s Pretium Resources (TSX: PVG) for $3.5 billion.
Under terms of the deal, Newcrest will buy Vancouver-based Pretium for $18.50 per share. Pretium's shareholders can choose between accepting the offer in cash or as 0.8084 of a Newcrest share for each share they currently hold.
Once the transaction is completed, Pretium shareholders will own 8% of Newcrest. The takeover offer represents a 23% premium to Pretium's closing share price on the Toronto Stock Exchange.
Newcrest is reportedly interested in Pretium's Brucejack mine in British Columbia. Brucejack has a mine life of 13 years and has produced 1,399,522 ounces of gold since mining began on the site in 2017. Pretium has forecast up to 365,000 ounces of production this year at Brucejack.
Newcrest has made previous deals in the British Columbia mining sector. In 2019, the company struck a deal with Imperial Metals for a 70% stake in its Red Chris mine.
The acquisition is subject to a vote by Pretium shareholders, as well as approval under the Investment Canada Act and other regulatory requirements. The companies say they expect the deal to close in the first quarter of next year (2022).
