Northwest mining company Pretivm set for 3.5 Billion dollar Australian purchase

The Brucejack Mining Operation north of Stewart
(photo from Pretivm website)

Pretivm Resources, the Northwest mining company that operates the BruceJack mine north of Stewart is in the midst of a global purchase, with Australian mining giant Newcrest set to buy up all outstanding stock in the 3.5 Billion dollar financial move.

The plans for acquisition were outlined on Monday by Pretivm President and CEO Jacqure Perron, who shared his view with company investors on the merits of the Australian moves.

“The acquisition of Pretivm by Newcrest is an outstanding opportunity for the Company and its shareholders, employees, First Nations partners and the local communities in northwest British Columbia. The Transaction delivers an immediate and compelling premium for Pretivm shareholders that reflects the excellent work of our employees and contractors in developing and operating the Brucejack gold mine, while also offering an opportunity to benefit from potential upside as Newcrest shareholders.” 

It's not just the current mine in operation that has attracted the Australian investors, but the larger potential of the area surrounding the Brucejack Mine, with a number of areas adjacent to the current mint operations of note and being explored in recent years.

The Brucejack mine began production in the summer of 2017 and is considered to be one of the highest grade gold mines in operation in the world. The mining operations take place in the traditional territories of the Tsetsaut Skii km Lax Ha and Tahltan Nation, and in the Nass Area of Nisga’a Nation 

Monday's announcement also noted what Newcrest brings to the purchase, adding to its current holdings in the region and how its corporate view matches up with that Pretivm.

 “With this acquisition, Brucejack will join Newcrest’s portfolio of tier one assets, mitigating the inherent risks associated with ownership of a single-asset mining company. Moreover, Newcrest has the financial means and the intention of maximizing the long-term potential of the Brucejack Mine and the district scale opportunities in the surrounding Brucejack property. Newcrest and Pretivm have complementary corporate cultures and values, with a focus on safety, employee development and ESG. We believe our employees, First Nations partners and community partners will be very well-positioned to succeed and develop under Newcrest’s world-class stewardship.” 

Newcrest operates the Red Chris mine in Tahltan territory, the company's relationship with Tahltan Central Government was outlined in the Tahltan Industry review earlier this year. 

The deal which has to be approved by a 2/3rds vote of Pretivm shareholders is anticipated to be concluded by the first quarter of 2022.

 The background to the announcement from Monday can be reviewed here.