Zijin Mining Group has agreed to make a strategic investment in PVG, which, upon closing, will make Zijin a 9.9% owner of PVG's outstanding shares. Upon closing of the transaction, Zijin will own approximately 12.84MM PVG shares; PVG will receive gross proceeds of C$80.87MM.

Pretium intends to use the proceeds from the Offering to fund capital expenditures including the procurement of long-lead items and camp infrastructure. In November, PVG announced that AMEC had been awarded EPCM services for Brucejack. ¦ Permitting continues to move through the 180-day Environmental Assessment application period, which commenced on August 13, 2014. Provincial and Federal reviews remain coordinated. The company continues to expect receipt of permits in 1H15. Once permits are received, conditional on a positive production decision, the company plans to initiate construction in 1H15.

The offering is scheduled to close on or about January 16, 2015, subject to regulatory approvals and approvals from the Chinese government. Zijin will be entitled to nominate one person to the PVG Board, and will have a pre-emptive right to participate in any of PVG's future equity financings to maintain its approximately 9.9% interest.

Eoin Treacy's view

Here is a link to the full report.

Zijin’s investment in Pretium highlights the fact that Chinese buyers are still in the market to secure promising resources following major price declines. Over the last decade there have been plenty of examples of this type of investment timing. From a supply and demand perspective, the entry of buyers of distressed companies represents a change from the environment that has prevailed over the last year; when the majority of gold mining shares fell to historic lows relative to the gold price. 

Pretium found support in November above its 2013 nadir and a sustained move below $4 would be required to question medium-term scope for continued higher to lateral ranging. 

Zijin Mining is one of the highest yielding gold miners at 4.77%. The share continues to hold a progression of higher reaction lows and most recently bounced from the region of the 200-day MA. 

Gold has now closed its overextension relative to the 200-day MA and will need to hold above $1180 if current scope for a downside failure and additional higher to lateral ranging is to remain credible. 

Silver’s rally today represents follow through on last week’s large upside key day reversal. 

Platinum continues to firm from the region of $1200 and a sustained move below that level would be required to question short-term scope for additional upside. 

Palladium remains a relative strength leader in the sector and has been ranging in the region of the upper side of a three month range. A clear downward dynamic would be required to question potential for additional upside.