Brigus Gold Corp. Announces Filing of Final Prospectus
Brigus Gold Corp. ('Brigus? or the 'Company?) (TSX: BRD) (NYSE Amex:
BRD) announced that it has filed a final short form prospectus (the
'Prospectus?) in respect of the previously announced bought deal
offering. The Company entered into an underwriting agreement (the
'Underwriting Agreement?) dated March 9, 2011 with a syndicate of
underwriters led by BMO Nesbitt Burns Inc. and including Haywood
Securities Inc., CIBC World Markets Inc., Cormark Securities Inc. and
Paradigm Capital Inc. (the 'Underwriters?). Pursuant to the Underwriting
Agreement, the Company has agreed to sell and the Underwriters have
agreed to purchase US$50,000,000 principal amount of senior unsecured
convertible debentures (the 'Convertible Debentures?).
Highlights
Interest rate of 6.5% per year, payable semi-annually in arrears on
the last day of March and September commencing September 30, 2011
Maturity date: March 31, 2016 (five years)
Redemption right after 3 years
Conversion price of US$2.45 per Brigus common share
Issue price of US$1,000 per Convertible Debenture and will be listed
for trading on the Toronto Stock Exchange.
The net proceeds will be used to completely repay the existing project
debt facility of approximately US$22 million held by RMB Australia
Holdings Limited with the balance used to accelerate exploration
drilling at the Company′s Black Fox Complex, for continuing development
of the Black Fox Complex, to undertake an engineering study on the
expansion of the Black Fox Mill, and for general working capital
purposes.
The offering is scheduled to close on or about March 23, 2011 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 Equities, and the securities regulatory
authorities.
This news release shall not constitute an offer to sell or solicitation
of an offer to buy the Convertible Debentures in any jurisdiction. The
Convertible Debentures will not be and have not been registered under
the United States Securities Act of 1933 and may not be offered or sold
in the United States absent registration or applicable exemption from
the registration requirements.
About Brigus
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 Gold holds a 100 percent interest in the Ixhuatan Project
located in the state of Chiapas. In the Dominican Republic, Brigus has a
joint venture covering three mineral exploration projects.
Cautionary and Forward-Looking Statements
This news release includes 'Forward-Looking Statements? within the
meaning of Canadian securities laws and section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements regarding
the Company′s ability to successfully continue development of the Black
Fox Complex, to undertake an engineering study of the Black Fox Mill,
including the timing and outcome of such study, are forward-looking
statements and estimates that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. 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 and its predecessor
companies′ most recent annual report on Form 10-K filed with the United
States Securities and Exchange Commission, the Prospectus 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, on SEDAR 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, Vice President, Investor
Relations
902-422-1421
ir@brigusgold.com
or
Wendy
Yang, Vice President
303-524-3203