Brigus Gold Settles Dispute on Huizopa Project
Brigus Gold Corp. ('Brigus? or the 'Company?) (TSX: BRD) (NYSE Amex:
BRD) is pleased to advise that it has reached a settlement agreement in
connection with its Huizopa exploration project located in the Sierra
Madre Occidental mountains in Chihuahua, Mexico.
In connection with the settlement agreement, the Company has entered
into a related sale agreement pursuant to which Brigus has sold its 100%
interest in its Mexican subsidiary, Minera Sol de Oro, S.A. de C.V. and
its joint venture in the Huizopa Project to the Cormack Capital Group,
LLC for proceeds of US$3.5 million, payable over a five-year term, while
the Company retains a 3% Net Smelter Royalty ('NSR?) over future
production from the Huizopa Project. Cormack can reduce Brigus′ NSR to
2% by making a US$1.0 million payment to the Company and may also elect
to pay up to 40% of the purchase price through the issuance of common
shares in a publicly traded company listed on a recognized U.S. or
Canadian national stock exchange. In addition, Brigus will receive a
production bonus payment of US$5.0 million within one year of the
commencement of commercial production at the Huizopa Project.
The dispute related to the Huizopa Project pre-dated the June 2010
merger between Apollo Gold Corporation and Linear Gold Corp. to form
Brigus Gold Corp. Settlement of the dispute allows Brigus to focus on
its advanced Canadian asset portfolio while maintaining a significant
royalty in the prospective Huizopa Project and receiving payments of up
to US$9.5 million. Brigus′ advanced Canadian asset portfolio includes
the Company′s flagship Black Fox Complex, including the producing Black
Fox Mine, as well as the Company′s Goldfields Project, consisting of the
Box and Athona gold deposits, where Brigus expects to make a production
decision in 2011.
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 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 is also advancing the Goldfields Project located
near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona
gold deposits. In Mexico, Brigus holds a 100% interest in the Ixhuatan
Project located in the state of Chiapas, and a 3% NSR interest in the
Huizopa Project, 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.
Brigus Gold Corp.
Wendy Yang, 720-886-9656 Ext. 217
Vice
President of Investor Relations
ir@brigusgold.com
www.brigusgold.com