Brigus Gold Agrees to Sell Calais Notes for USD $6.0 Million
(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.
Brigus Gold Corp.
Jennifer Nicholson, CA, 902-442-7186
Executive
Vice President
jnicholson@brigusgold.com
or
Katherine
Burgess, 902-442-7184
Manager, Stakeholder Relations
kburgess@brigusgold.com
