Brigus Gold Revises Project Debt Facility Agreement with Its Banks
November 22 2010 - 4:32PM
Business Wire
Brigus Gold Corp. (“Brigus Gold” or the “Company”) (TSX:
BRD)(NYSE Amex: BRD) announces that it has revised its Project
Facility Agreement (“Project Debt”) with its original lenders,
Macquarie Bank Limited (“Macquarie”) and RMB Australia Holdings
Limited (“RMB”) and provides the following update of the current
Project Debt. All dollar amounts in this news release refer to U.S.
dollars, unless otherwise noted.
On October 20, 2010, using proceeds from the October 2010 equity
financing of Cdn$51.75 million, Brigus Gold repaid $20.7 million of
the Project Debt owed to Macquarie and RMB, resulting in a balance
of $21.1 million, of which $14.1 million was owed to Macquarie and
$7.0 million to RMB.
The Company has now consolidated its Project Debt with RMB as
the one remaining lender. The Company has increased the debt owed
to RMB from $7.0 million to $22.0 million, and repaid the full
amount owed to Macquarie of $14.1 million. Thus, Macquarie is no
longer a participant in the Project Debt.
The terms of the Project Facility Agreement remain unchanged,
including the interest on the Project Debt at a rate of LIBOR plus
7% per annum, payable monthly. The principal of $22.0 million will
be repaid in quarterly payments beginning June 30, 2011 at
approximately $3.7 million per quarter with the final payment due
on September 30, 2012. The Project Debt was originally entered into
by the parties in early 2009 and provided a significant portion of
the capital used to build the Black Fox Mine and Mill.
As previously announced in the Company’s November 16, 2010 news
release, Brigus Gold generated $7.1 million in operating income for
the third quarter of 2010. The Company also achieved its best
quarter of overall operational results from its wholly owned and
operated Black Fox Mine and Mill since commencement of production
in May 2009. The mill produced 21,526 ounces of gold (19,265 ounces
of gold sold) at total cash costs per ounce sold of $440 during the
third quarter of 2010.
As an unhedged gold producer with no gold derivative positions
beginning in 2011 and a rising production profile, Brigus Gold
expects to achieve increased cash flow from operations going
forward.
About Brigus Gold
Brigus Gold 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 in the Timmins gold district of
Ontario, Canada. The Black Fox Complex encompasses the Black Fox
Mine and Mill, and adjoining Grey Fox-Pike River property, all in
the Township of Black River-Matheson, Ontario, Canada. Brigus Gold
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, and an 80 percent interest
in the Huizopa Joint Venture, an early stage, gold-silver
exploration project located in the State of Chihuahua. In the
Dominican Republic, Brigus Gold has a joint venture covering three
mineral exploration projects.
Non-GAAP Financial Measures
The term “total cash cost” is a non-GAAP financial measure and
is used on a per ounce of gold basis. Total cash cost is equivalent
to direct operating cost as found on the Consolidated Statements of
Operations and includes by-product credits for payable silver
production. We have included total cash cost information to provide
investors with information about the cost structure of our mining
operations. This information differs from measures of performance
determined in accordance with GAAP in the United States and Canada
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP. This
measure is not necessarily indicative of operating profit or cash
flow from operations as determined under GAAP and may not be
comparable to similarly titled measures of other companies.
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 estimated
production and total cash costs in 2011, the underground operation
at Black Fox, our future production profile and future cash flow
from operations 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, 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 Gold’s 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 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.
Brigus Gold Corp Ordinary Shares (Canada) (AMEX:BRD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Brigus Gold Corp Ordinary Shares (Canada) (AMEX:BRD)
Historical Stock Chart
From Aug 2023 to Aug 2024