Brigus Gold Agrees to Sell Remaining Interest in Dominican Republic Properties to Everton Resources
Brigus Gold Corp. ('Brigus? or the 'Company?) (NYSE Amex: BRD) (TSX:
BRD) announces that the Company has signed a letter of intent with
Everton Resources Inc. ('Everton?) whereby Everton will acquire Brigus′
remaining interest in the Ampliacion Pueblo Viejo (APV), Ponton and La
Cueva concessions in the Dominican Republic ('the Concessions?).
Under the terms of the agreement, Everton will complete a minimum
Cdn$5.0 million financing, pay Brigus Cdn$1,000,000 cash and issue
Brigus 15,000,000 Everton shares. Brigus will also receive a sliding net
smelter return royalty on the Concessions equal to two per cent based on
the current price of gold.
'Everton is a strong partner to advance the Dominican Republic projects
in the near-term as we remain focused on our core properties in Canada,?
said Wade K. Dawe, President and CEO of Brigus.
In addition, Everton is required to incur a minimum Cdn$5.0 million work
commitment on the Concessions over the next two years. Upon completion
of a 43-101 compliant measured and indicated resource on the Concessions
of a minimum 1,000,000 ounces of gold equivalent (at an average grade of
2.5g/t or higher for APV and 1.5g/t or higher for Ponton and La Cueva),
Everton will pay Brigus an additional Cdn$5.0 million or 5,000,000
common shares, whichever has the greater value.
The closing of the transaction with Everton is subject to Everton
completing its planned financing. The transaction and financing are
subject to receiving regulatory approval.
About Everton Resources
Everton Resources is a well-funded junior exploration company with
properties in the Dominican Republic, in Ontario and in Quebec. The
Company provides investors with an exceptional portfolio of active
projects in three separate and distinct emerging gold and base metals
districts.
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 which is subject to a letter of intent
with Cangold. In the Dominican Republic, Brigus has a joint venture
covering three mineral exploration projects, which is subject to a
letter of intent with Everton Resources.
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, advancement
and development of the Concessions, production from the Concessions, the
closing of the transaction with Everton, and Everton′s planned 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 the 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, 902-422-1421
Vice
President, Investor Relations
ir@brigusgold.com
or
Wendy
Yang, 303-524-3203
Vice President