Bob Quartermain is back in the saddle.
The 55-year-old former president and CEO of Vancouver-based Silver Standard Resources Inc. (TSX:SSO) is at the helm of startup Pretium Resources Inc. (TSX:PVG) and searching for treasure again.
After nearly a year of retirement, Quartermain recently closed one of the biggest initial public offerings in B.C.’s mining sector last year, totalling $265 million.
“I’m very happy where we are today,” Quartermain told Business in Vancouver.
“We’ve just gone out and raised $265 million, and for a company coming out with a market cap of $500 million I think that speaks to the skill sets I have.”
Pretium opened on Canada’s benchmark Toronto Stock Exchange at $5.95 per share on December 21.
At press time, shares were valued at $6.18 and the company’s market capitalization was $487 million.
The company broke onto the scene during a year when commodity prices swelled to record highs, causing some veteran executives to jump aboard new corporate ships and cash in.
In addition to Pretium, Vancouver’s mining sector bore witness to two similar deals last year.
In May, Vancouver-based Goldcorp Inc. (TSX:G) sold its Escobal silver project to its former president and CEO Kevin McArthur for $505 million.
Then in June, Goldcorp did it again when it sold its San Dimas gold-silver mine to former Iamgold Corp. (TSX:IMG) president and CEO Joseph Conway for $500 million.
For Pretium, a high valuation this early in the game can be chalked up to a few snowy peaks in the midst of B.C.’s golden triangle.
Those peaks, which are north of Stewart, contain two projects – Snowfield and Brucejack.
Combined, the two projects are estimated to contain 27.8 million ounces of gold, 157.2 million ounces of silver, 2.14 billion pounds of copper and 198.1 million pounds of molybdenum, ranking them among the top five gold-copper mineral systems on the continent. Quartermain, an exploration geologist by trade, said the mineralization at Snowfield is similar to the old Eskay Creek mine, a gold deposit that operated 20 kilometres north of there.
“I’m sitting here looking at a specimen of gold that I haven’t seen in my life other than in museum quality,” he said.
Pretium bought the projects in December from Quartermain’s former venture, Silver Standard.
After 25 years building Silver Standard into a multibillion-dollar company, he resigned as chief executive last January.
He told BIV there was no bad blood.
“The board and I felt … some new blood coming in, particularly after 25 years, would be good,” he said.
Of course, Silver Standard is now Pretium’s largest shareholder.
The company agreed to sell the projects to Quartermain in October for $450 million, consisting of $215 million cash and the balance paid in shares.
“Bob Quartermain has a proven track record in capturing value from exploration, and we look forward to Snowfield and Brucejack being given the absolute focus by Pretium to build value,” commented Silver Standard CEO John Smith.
Quartermain said the deal means Silver Standard would have a 40% to 45% stake in Pretium.
The next step for Pretium is to move into a bigger office, hire support staff and sink more drills into the ground at Snowfield and Brucejack.
And despite a successful career, Quartermain doesn’t plan on retiring any time soon.
“I had Freedom 55 earlier, and now I’m back, free doing what I want, which is exploration.”