By Maria Armental

Newcrest Mining Ltd. has struck a deal to buy the rest of the shares of Pretium Resources Inc. in a deal with an equity value of about C$3.5 billion.

Under the terms of the binding agreement, which the companies disclosed Monday, Pretivm shareholders have the option of receiving C$18.50 in cash for each Pretivm share or 0.80847 a Newcrest share.

Pretivm shareholders who don't elect cash or Newcrest shares, subject to proration, will receive default consideration of C$9.25 in cash for each Pretivm share and 0.40427 a Newcrest share.

The agreement includes a termination fee of C$125 million, payable by Pretivm, under certain circumstances.

Newcrest currently owns about 4.8% of Pretivm's shares. The transaction, which is expected to be completed in the first quarter of 2022, would result in Pretivm shareholders owning about 8% of Newcrest.

"The combination of Newcrest and Pretivm will create the leading gold miner in British Columbia's Golden Triangle, operating both the Brucejack and Red Chris mines," Sandeep Biswas, Newcrest's managing director and chief executive, said in a statement.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

11-08-21 1837ET