Australia-based Newcrest Mining has agreed to acquire the remaining stake that it does not already own in Pretium Resources (Pretivm) in a deal valued at around $2.8bn.

Pretivm owns Brucejack operation in the Golden Triangle region of British Columbia, Canada.

In July 2017, the company commenced the production in the Brucejack, which is said to be one of the highest-grade operating gold mines in the world.

According to the company, the Pretivm Technical Report anticipated gold production of 311koz per annum at an all-in-sustaining cost of $743 per ounce of gold over a projected 13 year mine life.

Pretivm president and CEO Jacques Perron said: “The acquisition of Pretivm by Newcrest is an outstanding opportunity for Pretivm and its shareholders, employees, First Nations partners and the local communities in northwest British Columbia.”

Brucejack is around 140 km from Newcrest’s majority-owned and operated Red Chris mine, situated on Tahltan territory.

The acquisition is said to add a Tier 1 large scale, long life and low cost mine to Newcrest’s portfolio of Tier 1 assets.

Newcrest managing director and CEO Sandeep Biswas said: “We are delighted to be expanding our presence in this highly prospective region in British Columbia.

“Brucejack is a Tier 1 mine in a Tier 1 jurisdiction and will deliver immediate production, free cash flow and earnings diversification to Newcrest and will fit seamlessly into our long life, low cost portfolio.”

Following the completion of the deal, Newcrest will become the operator and 100% owner of Brucejack.

The deal is expected to be completed in the first quarter of next year.

In August this year, Newcrest has announced to invest A$246m ($181.4m) for the West Dome Stage 5 cutback at its Telfer operations in Western Australia.