There is money out there investing in big projects Money is being invested in large scale projects. A lot of majors such as agnico eagle have invested in smaller companies and the you have investments made in companies such as pretium.
Pretium Resources Inc. (TSX: T.PVG, Stock Forum) said that it has entered into a subscription agreement with Liberty Metals & Mining Holdings, LLC (LMM), a subsidiary of Boston-based Liberty Mutual Insurance, to issue to LMM by way of a private placement 5.8 million common shares of Pretivm at a price per share of $6.92 for gross proceeds of approximately $40 million.
The offering is scheduled to close on or about April 26, 2013, subject to regulatory approvals.
According to the Pretivm Resources press release, the company intends to use the proceeds of the offering to fund work at its Brucejack project, including the completion of the planned 10,000-tonne bulk sample and underground drilling program at the Valley of the Kings, ongoing permitting activities, and the acceleration of other activities which will advance the high-grade gold Valley of the Kings into development.
Brucejack, located 65 kilometres north of Stewart, British Columbia, hosts a major undeveloped high-grade gold resource and mineralization remains open along strike and at depth.
Pursuant to the subscription agreement, LMM will be entitled to nominate one person to be appointed to the board of directors of Pretivm and will have a pre-emptive right to participate in any future equity financings of Pretivm.
LMM is not permitted to trade the purchased shares for a period of four months plus one day from the closing of the offering.
Pretivm is creating value through gold at its high-grade gold Brucejack project, located in northern British Columbia.
On Tuesday, Pretivm was trading at $6.55 a share. The company had a market cap of $631.9 million, based on 96.5 million shares outstanding. The 52-week high and low was $16.74 and $5.53 respectively.