Brigus Gold Corp. Announces C$50 Million "Bought Deal" Financing
September 28 2010 - 1:02PM
Business Wire
Brigus Gold Corp. (“Brigus Gold” or the “Company”) (TSX:
BRD)(NYSE Amex: BRD) is pleased to announce that it has entered
into an agreement with a syndicate of investment dealers, whereby
the Underwriters have agreed to: (i) purchase 30,000,000 units
(“Units”) of Brigus at a price of C$1.50 per Unit (the "Unit
Price") for gross proceeds to the Company of C$45,000,000, and (ii)
offer for sale on a guaranteed agency basis, up to 2,941,177 common
shares designated as flow-through shares for purposes of the Income
Tax Act (Canada) (the “Flow-Through Shares”), at a price of C$1.70
per Flow-Through Share (the “Flow-Through Price”) for gross
proceeds to the Company of up to C$5,000,000 (collectively, the
“Offering”). Each Unit will consist of one common share (“Common
Share”) and one quarter of one common share purchase warrant (each
whole warrant a “Warrant”), with each Warrant entitling the holder
to acquire one Common Share at a price of C$2.19 expiring November
19, 2014. The Flow-Through Shares and the Units will be publicly
offered by way of short form prospectus to purchasers resident in
each of the provinces and territories of Canada, excluding
Quebec.
The units will also be offered in the United States on a private
placement basis to certain institutional investors pursuant to Rule
144A of the United States Securities Act of 1933, as amended
(“Securities Act”) and to “Accredited Investors” satisfying one or
more of the criteria set forth in Rule 501(a) of Regulation D
promulgated under the Securities Act.
In addition, the Company has granted the Underwriters an
over-allotment option to purchase up to an additional 15% of any
combination of Units and Flow-Though Shares included in the
Offering for a period of up to 30 days after the closing of the
Offering.
The offering is scheduled to close on or about October 19, 2010
and is subject to certain conditions including, but not limited to,
the receipt of all necessary approvals including the approval of
the Toronto Stock Exchange, the NYSE Amex, and the securities
regulatory authorities.
The Company plans to use C$5.0 million of the net proceeds from
the sale of the Units for working capital with approximately 50% of
the balance used to reduce outstanding project debt related to the
Black Fox project and 50% of the balance used to reduce the
Company’s existing gold hedge commitments.
The Company will use the proceeds from the sale of the
Flow-Through Shares to incur flow-through expenditures for its
Canadian projects located near Timmins, Ontario and Uranium City,
Saskatchewan which qualify as 100% Canadian Exploration Expense
(“CEE”), and will renounce such flow-through expenditures to the
investors for the taxation year ending December 31, 2010.
This press release shall not constitute an offer to sell or
solicitation of an offer to buy the securities in any jurisdiction.
The common shares will not be and have not been registered under
the Securities Act and may not be offered or sold in the United
States absent registration or applicable exemption from the
registration requirements.
Cautionary and Forward-Looking Statements:
Statements contained in this document 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 amount of
financing, the “bought deal” basis of the financing and the timing
therewith, as well as related to the option granted to the
Underwriters are forward-looking statements and estimates that
involve various risks and uncertainties. This forward-looking
information includes, 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, the size, timing and use of proceeds and gross
proceeds of the company, and the financial results of the company.
Important factors that could cause actual results to differ
materially from these forward-looking statements include
environmental and financing risks and other factors disclosed under
the heading “Risk Factors” in Brigus Gold’s and its predecessor
companies’ most recent annual report on Form 10-K filed with the
United States Securities and Exchange Commission and elsewhere in
Brigus Gold’s documents filed from time to time 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.
Brigus Gold Corp Ordinary Shares (Canada) (AMEX:BRD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Brigus Gold Corp Ordinary Shares (Canada) (AMEX:BRD)
Historical Stock Chart
From Jul 2023 to Jul 2024