Brigus Gold Agrees to Sell Calais Notes for USD $6.0 Million
May 07 2012 - 7:00AM
Business Wire
(NYSE Amex: BRD; TSX: BRD) – Brigus Gold Corp. (“Brigus” or the
“Company”) has entered into an agreement with New West Capital to
sell the outstanding Calais Notes (“Notes”) for USD $6.0 million.
To date, Brigus has received payments totaling USD $500,000. On
June 30, 2012, the company will receive an additional USD $1.0
million followed by the remaining USD $4.5 million, payable on
August 31, 2012.
The Notes were originally acquired as consideration when the
Company sold a non-core asset in 2010 and were originally valued
and recorded at $3.4 million in Brigus’ accounts. When combining
the $1.2 million that was repaid in 2011 from Calais Resources Inc.
with the proceeds from this sale, the Company will receive a total
of $7.2 million in cash resulting in a $3.8 million gain on sale of
these Notes.
Proceeds of the sale will be used to buy back one percent of the
gold stream on the Black Fox Mine. In 2010, Brigus entered into a
gold stream agreement for 12 percent of the gold production from
the Black Fox Mine for an upfront payment of $56.3 million and an
ongoing per ounce payment of $500. Brigus has the option to reduce
the gold stream to six percent for a cost of $36.6 million. The
company plans to exercise this option and is currently
investigating other non-dilutive ways to fund a repurchase of the
remaining five percent.
“We are very pleased to have sold these Notes at a significant
premium to our book value,” said Wade Dawe, Brigus’ President and
CEO. “This sale will enable us to begin buying back half of the
gold stream.”
For full details on the Sandstorm agreement please visit the
Company’s website at www.brigusgold.com or SEDAR.
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 has
granted Cangold Limited the option to acquire a 75% interest in the
Company’s Ixhuatan Project located in the state of Chiapas. In the
Dominican Republic, Brigus has signed an agreement to sell its
remaining interests in three mineral exploration projects.
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 ability of
the Company to achieve its production, total cash costs, steady
state annual production and mining rate estimates; estimated
average gold grades for the open pit and underground operations;
increase in gold production; increase in profitability; exploration
drill results and resource additions, are forward-looking
statements and estimates that involve various risks and
uncertainties. This forward-looking statements include, or may be
based upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the outcome of
legal proceedings, the issue of permits, the size and quality of
the Company's mineral resources, progress in development of mineral
properties, future production and sales volumes, capital and mine
production costs, demand and market outlook for metals, future
metal prices and treatment and refining charges, and the financial
results of the Company.
Important factors that could cause actual results to differ
materially from these forward-looking statements include
environmental risks and other factors disclosed under the heading
“Risk Factors” in Brigus’ most recent Annual Information Form and
Management Discussion and Analysis filed under the Company’s name
at www.sedar.com and annual report on Form 40F filed with the
United States Securities and Exchange Commission at www.sec.gov as
well as elsewhere in Brigus’ documents filed from time to time with
the Toronto Stock Exchange, the NYSE Amex Equities, 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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