Brigus Gold Closes $30 Million Bought Deal Debt Financing
Brigus Gold Corp. (NYSE MKT: BRD; TSX: BRD)('Brigus? or the 'Company?)
has completed the previously announced $30 million bought deal debt
financing (the 'financing?). The financing was arranged by Casimir
Capital for a finance structure fee of 2.77 percent. The $30 million in
senior secured debt notes are secured by a lien against the Company's
Black Fox Complex and the Goldfields properties with a three year term.
Principle payments of $2 million will be paid quarterly, commencing on
June 30, 2013. The Notes will bear interest at an annual rate as
calculated below, which shall be paid monthly based on the closing
Bloomberg Composite New York Gold Price from the prior month.
Bloomberg Composite New York Gold Price (US$/oz) | ? | Annual Interest Rate | |
From $0 to $1,799.99 | 9% | ||
From $1,800 to $1,999.99 | 10% | ||
From $2,000 to $2,499.99 | 12% | ||
From $2,500 and above | 14% |
The Company will use $24.4 million of the debt proceeds to repurchase 4
percent of the existing 12 percent goldstream with Sandstorm Gold Ltd.
('Sandstorm?). Under the agreement with Sandstorm, the Company may
repurchase up to 6 percent of the goldstream until January 1, 2013.
Brigus will make a decision on the remaining 2 percent prior to the end
of the year.
About Brigus Gold
Brigus is a growing Canadian 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, the new
Grey Fox property and adjoining properties in the Township of Black
River-Matheson, Ontario, Canada. The Black Fox Mine is in production and
the Grey Fox Mine, located four kilometres from Black Fox is in
development. Brigus is also advancing the Goldfields Project located
near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona
gold deposits. In Mexico, Brigus owns the Ixhuatan Project located in
the state of Chiapas. 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 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. Such forward-
looking statements reflect the Company's view with respect to future
events (including the repurchase of the goldstream) and 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 factors
disclosed under the heading 'Risk Factors? in Brigus Gold′s most recent
Annual Information Form and Management Discussion and Analysis filed
under the Company′s name at www.sedar.com
and annual report on Form 40-F filed with the United States Securities
and Exchange Commission at
www.sec.gov 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 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
Jennifer Nicholson, CA, 902-442-7186
Executive
Vice President
jnicholson@brigusgold.com
or
Kate
Wood, 902-442-7184
Manager, Investor Relations
kwood@brigusgold.com