Brigus Gold Completes Option of 75% Interest in Its Ixhuatan Gold Project in Mexico
Brigus Gold Corp. ('Brigus? or the 'Company?) (NYSE Amex: BRD)(TSX: BRD)
announces that Cangold Limited ('Cangold?) has received regulatory and
TSX Venture Exchange approval and has completed its previously announced
transaction with Brigus. The terms of the transaction provide Cangold
with the option to acquire a 75% interest in Brigus′ Mexican subsidiary
(the 'transaction?) that owns the Ixhuatan gold project ('Ixhuatan
Project?), an advanced exploration stage project located in Chiapas,
Mexico.
Cangold has filed an updated Canadian National Instrument 43-101 report
on the project (P. Secombe, May 18, 2011) and has completed a definitive
option agreement with Brigus. Pursuant to the terms of the transaction,
Cangold has paid Brigus Cdn$1.0 million and has issued 6.0 million
Cangold shares to acquire the initial option and will be required to pay
Brigus Cdn$1.0 million and issue 6.0 million Cangold shares after 12
months and an additional Cdn$3.0 million and 4.0 million Cangold shares
after 24 months. To exercise its option and acquire a 75% interest in
the Ixhuatan Project, Cangold will then be required to pay Brigus Cdn$5
million and issue 4.0 million Cangold shares as well as complete an
independent third-party feasibility study on the Campamento Deposit
within 36 months. Following Cangold′s exercise of the purchase option,
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. Brigus will retain a 2% Net Smelter Return royalty
over the project and upon commencement of commercial production, will
also receive a payment of Cdn$5.00 per ounce of gold in the Proven and
Probable category included in the feasibility study.
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 has completed its transaction to sell a 75% interest
in the Ixhuatan Project located in the state of Chiapas to Cangold. 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 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
902-422-1421
ir@brigusgold.com