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Not for distribution to U.S. news wire services or dissemination in
the United States.
Halifax, Nova
Scotia; March 23, 2011 � Brigus
Gold Corp. (�Brigus� or the �Company�) (TSX and
NYSE Amex: BRD) has completed its previously announced bought deal financing
(the �Financing�) of US$50,000,000 aggregate principal amount of 6.5%
senior unsecured convertible debentures (the �Debentures�) at a price of
US$1,000 per Debenture. The Financing was underwritten by a syndicate led by
BMO Capital Markets and included Haywood Securities Inc., CIBC World Markets
Inc., Cormark Securities Inc. and Paradigm Capital
Inc. (collectively, the �Underwriters�).
The Debentures bear interest at 6.5% per annum, payable semi-annually on the
last day of March and September commencing on September 30, 2011, and mature on March 31, 2016. It is estimated that
the first interest payment, payable on September 30, 2011, will be US$33.94
per US$1,000 principal amount of Debentures. The first interest payment on
September 30, 2011 will include interest accrued from the closing date to,
but excluding, September 30, 2011. The Debentures are convertible at the holder�s
option into common shares of the Company at a conversion price of US$2.45 per
common share, subject to adjustment in certain circumstances and satisfaction
of certain conditions.
The Debentures are not redeemable before March 31, 2014. On or after March
31, 2014 and at any time prior to maturity, the Debentures may be redeemed in
whole or in part from time to time at the Company�s option, at a price equal
to their principal amount plus accrued and unpaid interest, provided that the
volume weighted average trading price of the common shares on the NYSE Amex
Equities Exchangefor the 20 consecutive trading
days ending on the fifth trading day preceding the date on which the notice
of redemption is given is not less than 125% of the conversion price.
The Company will use US$22.1 million of thenet
proceeds of the Financing to fully repay the project facility agreement with
RMB Australia Holdings Limited today. The balance of the net proceeds
will be used by the Company 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 Debentures are listed for trading on the Toronto Stock Exchange under the
symbol �BRD.DB.U�.
This news release does not constitute an offer to sell or a solicitation of
any offer to buy the securities in the United States. The securities offered
have not been and will not be registered under the U.S. Securities Act of
1933 and may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements of such act.
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. 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 regulations and section 21E of the United States Securities Exchange
Act of 1934, as amended. All statements regarding the use of the net
proceeds of the Financing, terms and conditions of the Debentures, timing of
conversion and maturity of the Debentures, the timing of capital spending and
the results there from, and the Company�s ability to continue development of
the Black Fox Complex, to complete an engineering study of the Black Fox
Mill, including timing and outcome of such study,are forward-looking statements and estimates that
involve various risks and uncertainties. Although the statement of the use of
net proceeds are reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no assurances that
they will prove to be correct 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 commodity price risk, economic risk 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 filed in connection with the Financing and elsewhere in Brigus Gold�s documents filed from time to time with the
Toronto Stock Exchange, the NYSE AmexEquities
Exchange, 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.
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