Brigus Gold Agrees to Sell Remaining Interest in Dominican Republic Properties to Everton Resources
May 25 2011 - 8:30AM
Business Wire
Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE Amex: BRD)
(TSX: BRD) announces that the Company has signed a letter of intent
with Everton Resources Inc. (“Everton”) whereby Everton will
acquire Brigus’ remaining interest in the Ampliacion Pueblo Viejo
(APV), Ponton and La Cueva concessions in the Dominican Republic
(“the Concessions”).
Under the terms of the agreement, Everton will complete a
minimum Cdn$5.0 million financing, pay Brigus Cdn$1,000,000 cash
and issue Brigus 15,000,000 Everton shares. Brigus will also
receive a sliding net smelter return royalty on the Concessions
equal to two per cent based on the current price of gold.
“Everton is a strong partner to advance the Dominican Republic
projects in the near-term as we remain focused on our core
properties in Canada,” said Wade K. Dawe, President and CEO of
Brigus.
In addition, Everton is required to incur a minimum Cdn$5.0
million work commitment on the Concessions over the next two years.
Upon completion of a 43-101 compliant measured and indicated
resource on the Concessions of a minimum 1,000,000 ounces of gold
equivalent (at an average grade of 2.5g/t or higher for APV and
1.5g/t or higher for Ponton and La Cueva), Everton will pay Brigus
an additional Cdn$5.0 million or 5,000,000 common shares, whichever
has the greater value.
The closing of the transaction with Everton is subject to
Everton completing its planned financing. The transaction and
financing are subject to receiving regulatory approval.
About Everton Resources
Everton Resources is a well-funded junior exploration company
with properties in the Dominican Republic, in Ontario and in
Quebec. The Company provides investors with an exceptional
portfolio of active projects in three separate and distinct
emerging gold and base metals districts.
About Brigus Gold
Brigus is a growing gold producer committed to maximizing
shareholder value through a strategy of efficient production,
targeted exploration and select acquisitions. The company operates
the wholly owned Black Fox Mine and Mill in the Timmins Gold
District of Ontario, Canada. The Black Fox Complex encompasses the
Black Fox Mine and adjoining properties in the Township of Black
River-Matheson, Ontario, Canada. Brigus is also advancing the
Goldfields Project located near Uranium City, Saskatchewan, Canada,
which hosts the Box and Athona gold deposits. In Mexico, Brigus
Gold holds a 100 percent interest in the Ixhuatan Project located
in the state of Chiapas which is subject to a letter of intent with
Cangold. In the Dominican Republic, Brigus has a joint venture
covering three mineral exploration projects, which is subject to a
letter of intent with Everton Resources.
Cautionary and Forward-Looking Statements
Statements contained in this news release which are not
historical facts are forward-looking statements that involve risk,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. All statements regarding the National
Instrument 43-101 report, advancement and development of the
Concessions, production from the Concessions, the closing of the
transaction with Everton, and Everton’s planned financing are
forward-looking statements and involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from these forward-looking statements include the
factors disclosed under the heading “Risk Factors” in Brigus’
financial report filings on www.sedar.com and www.sec.gov and with
the Toronto Stock Exchange, the NYSE Amex, the United States
Securities and Exchange Commission and other regulatory
authorities. All forward-looking statements included in this news
release are based on information available to the Company on the
date hereof. The Company assumes no obligation to update any
forward-looking statements, except as required by applicable
securities laws.
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