Newcrest Bulks Up With $2.8 Billion Gold Deal to Add Canada’s Pretium – by James Thornhill (Bloomberg News – November 8, 2021)

https://www.bloomberg.com/

Newcrest Mining Ltd. agreed to buy Pretium Resources Inc. in a cash and shares deal valuing the Canadian gold producer at about $2.8 billion, adding to a wave of consolidation in the sector.

Melbourne-based Newcrest will offer Pretium holders C$18.50 ($14.87) a share, a 23% premium to the target’s closing price Monday in Toronto. The transaction is unanimously recommended by Pretium’s board and requires the approval of two-thirds of the company’s shareholders.

The deal would “deliver immediate production, free cash flow and earnings diversification to Newcrest and will fit seamlessly into our long-life, low-cost portfolio,” Sandeep Biswas, Newcrest’s chief executive officer, said in a statement.

Adding Pretium, which owns the Brucejack operation close to Newcrest’s Red Chris mine in British Columbia, would immediately add more than 300,000 ounces a year of gold output, the company said.

For the rest of this article: https://www.bloomberg.com/news/articles/2021-11-08/newcrest-bulks-up-with-2-8-billion-gold-deal-to-add-pretium?srnd=premium-canada