Pretium Resources Inc. entered into an agreement to repurchase 100% of its gold off-take for about US$80 million from Triple Flag Mining Finance Bermuda Ltd. and Osisko Bermuda Ltd.
The transaction will occur in two tranches and will eliminate all components of a 2015 financing package for building the company's Brucejack gold-silver mine in British Columbia. About US$60 million will be payable Sept. 30, with the remaining US$20 million payable in the fourth quarter.
The company said Sept. 16 that the purchase price represents a rate of US$13 per ounce for the refined gold remaining to be delivered under the agreement.
In 2018, the first year after commercial production started at Brucejack, the company repurchased 100% of a precious metals stream for US$237 million and refinanced a construction credit facility with a US$480 million bank debt facility.
Pretium President and CEO Joseph Ovsenek said the mine's "robust" cash flow allowed the company to pay down the construction financing package quickly, and it will work to pay off its bank debt facility as soon as possible.
In April, an updated life-of-mine plan for Brucejack outlined an after-tax net present value of US$2.59 billion, discounted at 5%.
