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Bob Quartermain's Pretium Resources (PVG:TSX) had a less than stable year in 2013.  The shares went from a high of $13.18 on January 2, 2013 down to a low of $2.89 in November 2013 amid controversy surrounding the legitimacy of their extremely high-grade Valley of the Kings deposit in BC, part of their Brucejack project.  Since then, the company has regained investor confidence in the resource estimate and mine plan associated with the project.  The shares have since recovered to close at $7.68 today and have announced a $20 million flow-through (FT) financing to be done at $8.80 per share and $8.05 per share.

The company through BMO Capital Markets (sole bookrunner) intend to issue 568,182 investment tax credit FT shares at a price of $8.80 per share and 1,863,355 Canadian exploration expenses FT shares at $8.05 per share.  There is a greenshoe option for the agents to purchase an additional 745,342 Canadian exploration expenses FT shares for additional proceeds to Pretium of $6 million.

The company completed a successful bulk sample study which exceeded their expectations (Image: Pretium Resources)

The company completed a successful bulk sample study which exceeded their expectations (Image: Pretium Resources)

The company intends to use the money for continued exploration at the Valley of the Kings as well as towards the amended feasibility study which is expected to be released Q2/2014.  Updates to be input into the updated feasibility study include lower metal prices ($1,100/oz Au and $17/oz Ag), optimized site layout and capex as well as refinements to the mining and metallurgical processes as a result of the bulk sample program.

As of September 30, 2013, the company had $35 million in cash.  They produced 5,865 ounces of gold from their 10,000 tonne bulk-sample which should have earned them an additional $7 million (at $1,250/oz Au).  The company raised $15 million FT shares at a price of $10.10 in September and an additional $10 million of non-flow through shares with Liberty Metals and Mining at $9.35 per share.

Read: Pretivm to Complete a $20 Million Flow-Through Share Private Placement