Pretium Resources Inc. agreed to sell its reserves development-stage Snowfield gold property to Seabridge Gold Inc. for $100 million, with closing expected in the fourth quarter.
Snowfield is adjacent to one of Seabridge Gold's primary assets, the KSM gold-copper property in northwestern British Columbia.
Consideration includes a 1.5% net smelter royalty and a $20 million contingent cash payment payable within six months after the completion of a bankable feasibility study or the start of commercial production, whichever is earlier. Pretium said Dec. 4 that $15 million of the deferred payment represents an advance NSR payment and will offset amounts payable under the royalty.
Pretium said the sale will result in a noncash impairment loss in the fourth quarter. The company noted that Snowfield had a book value of $232.1 million as of Sept. 30.
Pretium will use the proceeds to reduce the revolving portion of its credit facility, which had an outstanding principal balance of $198.0 million as of Sept. 30.
In a same-day release, Seabridge Gold announced a bought-deal offering to raise $105 million, scheduled to close Dec. 9.
The financing comprises 6.1 million shares priced at $17.25 apiece, and includes a 10% overallotment option the syndicate of underwriters can exercise within 30 days of closing for additional proceeds of up to $10.5 million.