Dow and S&P 500 down, Oct. 1-5

The Dow Jones Industrial Average slipped 0.4% to 26,447.05 and the S&P 500 Index fell 0.98% to 2,885.57. Spot gold closed US$10.50 per oz. higher at US$1,202.70 per oz. gold.

Pretium Resources rose 7.1% to US$8.15 per share on news of a financing agreement. The company signed a commitment letter on Oct. 4 for a fully underwritten, US$480-million debt facility with the Bank of Nova Scotia, Société Générale and ING Capital LLC. The loan facility will be available by way of a US$250-million, senior-secured, amortizing non-revolving credit facility and a US$230-million, senior-secured revolving credit facility. The loan facility will help refinance the construction credit facility (US$423 million due on Dec. 31, 2018) for building the high-grade, underground Bruce Jack mine in northern British Columbia. Pretium said the funds will also be available for general corporate purposes, “including, if necessary, the repurchase of 100% of the existing 8% precious metals stream.” The loan facility will mature four years from the closing date.

One week after Barrick Gold and Randgold Resources announced an all-share merger, Barrick announced on Oct. 1 that its executive chairman, John Thornton, bought 2.27 million more shares in the company at an average $11.11 per share, nearly doubling his shareholding in Barrick to 5 million shares. Barrick also clarified in the same press release that based on the exchange ratio of 6.128 Barrick shares for each share of Randgold Resources under the business combination, the Randgold ordinary shares held by Mark Bristow could convert into 5.14 million Barrick shares after completing the merger, after which Bristow will become Barrick’s president and CEO. Barrick shares were up 3.5% at US$11.47 apiece.

Shares of Rio Tinto fell US$1.22 to US$49.80 per share. The company — along with joint-venture partners Mitsui and Nippon Steel & Sumitomo Metal — approved an investment of $1.55 billion (Rio Tinto’s 53% share is $820 million) to develop the Mesa B, C and H deposits at Robe Valley, and $579 million (Rio’s share: $307 million) in developing deposits C and D at the West Angelas operation. Rio says the investments will sustain production of the Pilbara Blend of iron ore, and its Robe Valley lump and fines products.