Ag vectors. Looks like SSO is cashing up for Ag development. Good move. New Scots CEO, John Smith, is an action guy with respect to prioritizing and development. Also, good to see Quartermain with his old gold properties. Win win situation.
Regards,
JA_P
SILVER STANDARD ANNOUNCES SALE OF SNOWFIELD AND BRUCEJACK PROJECTS
Silver Standard Resources Inc. has entered into an agreement to sellits Snowfield and Brucejack projects in Northern British Columbia toPretium Resources Inc., a company formed to acquire and explore preciousmetals projects, led by Robert A. Quartermain. Under the terms of thesale agreement, Silver Standard will receive total consideration of$450-million, consisting of a minimum of $215-million in cash and thebalance in common shares of Pretium valued at the offering price of suchshares under an initial public offering being undertaken by Pretium.The amount of the purchase price payable in cash will increase by theamount of the proceeds realized by Pretium under the IPO in excess of$265-million. On completion of the transaction, Silver Standard'sownership interest in Pretium is expected to be less than 50 per cent.
"The sale of Snowfield and Brucejack is the culmination of an extensivereview of strategic alternatives focused on developing projects that arecore to capability and strategy whilst monetizing project options thatare best developed by others," said John Smith, Silver Standard's chiefexecutive officer. "Bob Quartermain has a proven track record incapturing value from exploration, and we look forward to Snowfield andBrucejack being given the absolute focus by Pretium to build value fromcontinued exploration and project definition."
As contemplated by the sale agreement, Silver Standard will appoint twonominees to the five-member board of directors of Pretium at closing.The company will also have the right to purchase or sell securitiesunder subsequent equity offerings, as long as it holds at least 10 percent of the outstanding equity securities of Pretium.
The transaction has been approved by Silver Standard's board ofdirectors and is subject to a number of conditions, including theraising by Pretium of a minimum of $265-million in proceeds under theIPO. The closing of the transaction is expected to occur before the endof the year.
We seek Safe Harbor.