Brigus Gold Settles Dispute on Huizopa Project
Halifax, Nova Scotia
� December 30, 2010� Brigus
Gold Corp. (�Brigus� or the �Company�) (NYSE Amex:
BRD; TSX: BRD) is pleased to advise that it has reached a
settlement agreement in connection with its Huizopa
exploration project located in the Sierra Madre Occidental mountains in
Chihuahua, Mexico.
In connection with the settlement agreement, the Company has entered into a
related sale agreement pursuant to which Brigus has
sold its 100% interest in its Mexican subsidiary, Minera
Sol de Oro, S.A. de C.V. and its joint venture in the Huizopa
Project to the CormackCapital Group, LLC for
proceeds of US$3.5 million, payable over a five-year term, while the Company
retains a 3% Net Smelter Royalty (�NSR�) over future production from the Huizopa Project. Cormack can reduce Brigus� NSR to 2% by making a US$1.0 million payment to
the Company and may also elect to pay up to 40% of the purchase price through
the issuance of common shares in a publicly traded company listed on a
recognized U.S. or Canadian national stock exchange. In addition, Brigus will receive a production bonus payment of US$5.0
million within one year of the commencement of commercial production at the Huizopa Project.
The dispute related to the Huizopa Project
pre-dated the June 2010 merger between Apollo Gold Corporation and Linear
Gold Corp. to form Brigus Gold Corp.
Settlement of the dispute allows Brigus to focus on
its advanced Canadian asset portfolio while maintaining a significant royalty
in the prospective Huizopa Project and receiving
payments of up to US$9.5 million. Brigus� advanced
Canadian asset portfolio includes the Company�s flagship Black Fox Complex,
including the producing Black Fox Mine, as well as the Company�s Goldfields
Project, consisting of the Box and Athona gold
deposits, where Brigus expects to make a production
decision in 2011.
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 in the Timmins gold district of Ontario, Canada.
The Black Fox Complex encompasses the Black Fox Mine and Mill, and adjoining
Grey Fox-Pike River property, all 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 holds a 100%
interest in the Ixhuatan Project located in the
state of Chiapas, and a 3% NSR interest in the Huizopa
Project, an early stage, gold-silver exploration
project located in the state of Chihuahua. In the Dominican Republic, Brigus Gold has a joint venture covering three mineral
exploration projects.
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