Brigus Gold Signs Letter of Intent to Sell 75% of Its Ixhuatan Gold Project in Mexico
Brigus Gold Corp. ('Brigus? or the 'Company?) (NYSE Amex: BRD) (TSX:
BRD) announces that the Company has signed a letter of intent with
Cangold Limited ('Cangold?) whereby Cangold can acquire a 75% interest
in Brigus′ Mexican subsidiary (the 'transaction?) that owns the advanced
exploration stage Ixhuatan gold project ('Ixhuatan Project?) in Chiapas,
Mexico.
Cangold plans to file an updated Canadian National Instrument 43-101
report on the project and to complete a definitive option agreement with
Brigus by June 30, 2011. Upon signing of the option agreement, Cangold
will pay Brigus Cdn$1.0 million and issue 6.0 million Cangold shares
(following Cangold′s planned five to one share consolidation). To earn a
75% interest in the Ixhuatan Project, Cangold will be required to pay
Brigus a total of Cdn$10 million and issue 20.0 million post
consolidation shares over a three-year period as well as complete an
independent third-party feasibility study on the Campamento Deposit. At
that point, Cangold and Brigus will hold a 75% and 25% interest
respectively and will be responsible for their pro-rata costs in jointly
developing the Ixhuatan deposit. Upon commencing commercial production,
Brigus will receive a 2% Net Smelter Return royalty and a payment of
Cdn$5.00 per ounce of gold in the Proven and Probable category included
in the feasibility study.
Brigus′ Chief Executive Officer and President Wade K. Dawe, commented,
'Cangold is a strong partner to advance the Ixhuatan Project in the
near-term as we remain focused on expanding our Black Fox Mine and
advancing the Goldfields Project, both in Canada.?
Brigus would like to thank Sattva Capital Corp. for introducing this
opportunity to the Company, facilitating a property visit and exchange
of information, and coordinating a meeting between Brigus and Cangold
management.
The closing of the transaction with Cangold remains subject to Cangold
completing its planned share consolidation and a financing. The
transaction, Cangold′s share consolidation and financing are all subject
to receiving regulatory approval and approval of the TSX Venture
Exchange.
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 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
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 National Instrument 43-101 report, feasibility
study, advancement and development of the Ixhuatan Project, production
from the Ixhuatan Project, the closing of the transaction with Cangold,
and Cangold′s planned share consolidation and financing are
forward-looking statements and 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′ financial report filings on www.sedar.com
and www.sec.gov
and 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.
Jennifer Nicholson CA
Vice President,
Investor Relations
Phone: 902-422-1421
Email: ir@brigusgold.com
or
Wendy
Yang, Vice President
Phone: 303-524-3203