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Brigus Gold Announces
Filing of Final Prospectus
(Not for distribution to United States newswire services or for
dissemination in the United States)
Halifax, Nova
Scotia; March 16, 2011� Brigus Gold
Corp. (�Brigus� or the �Company�) (TSX and 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.
Contact
Information
Jennifer Nicholson, Vice President, Investor Relations
Phone: 902-422-1421
Email: ir@brigusgold.com
Wendy Yang, Vice President
Phone: 303-524-3203
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.
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