Silver mining company Silver Standard Resources (NASDAQ:SSRI)(TSX:SSO) said Friday it has agreed to sell its Snowfield and Brucejack projects in northern British Columbia to Pretium Resources, a company led by its former CEO Robert Quartermain, for $450 million. Under the terms of the sale, which is expected to close by year-end, Silver Standard will receive a minimum of $215 million in cash and the balance in common shares of Pretium, valued at the offering price of Pretium when it completes its planned IPO. The portion of cash paid in the transaction will increase by the amount of proceeds realized by Pretium under the IPO in excess of $265 million, the company said. Once the deal closes, Silver Standard is expected to have a stake of less than 50% in Pretium. Silver Standard said the sale of its two projects will allow the company to focus on developing its core properties. "The sale of Snowfield and Brucejack is the culmination of an extensive review of strategic alternatives focused on developing projects that are core to capability and strategy, whilst monetizing project options that are best developed by others," said CEO John Smith. Silver Standard will appoint two representatives to Pretium's five-member board of directors once the deal closes. Pretium is led by Silver Standard's former CEO Robert Quartermain, and was formed following his resignation in January to acquire and explore precious metals projects. The transaction, which has already been approved by Silver Standard's board, is subject to Pretium raising a minimum of $265 million in proceeds from its listing, among other conditions.

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