Brigus Gold Corp. from Brigus Gold by 24hgold

Mots clés associés : Canada | G Mexico | K Street | Uranium |

Brigus Gold Signs Letter of Intent to Sell 75% of Its Ixhuatan Gold Project in Mexico

Halifax, Nova Scotia; April 26, 2011� Brigus Gold Corp. (�Brigus� or the �Company�) (NYSE Amex: BRD; TSX: BRD) announces that the Company has signed a letter of intent with Cangold Limited (�Cangold�) whereby Cangold can acquire a 75% interest in Brigus� Mexican subsidiary (the �transaction�) that owns the advanced exploration stage Ixhuatan gold project (�Ixhuatan Project�) in Chiapas, Mexico.
Cangold plans to file an updated Canadian National Instrument 43-101 report on the project and to complete a definitive option agreement with Brigus by June 30, 2011. Upon signing of the option agreement, Cangold will pay Brigus Cdn$1.0 million and issue 6.0 million Cangold shares (following Cangold�s planned five to one share consolidation). To earn a 75% interest in the Ixhuatan Project, Cangold will be required to pay Brigus a total of Cdn$10 million and issue 20.0 million post consolidation shares over a three-year period as well as complete an independent third-party feasibility study on the Campamento Deposit. At that point, 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. Upon commencing commercial production, Brigus will receive a 2% Net Smelter Return royalty and a payment of Cdn$5.00 per ounce of gold in the Proven and Probable category included in the feasibility study.
Brigus� Chief Executive Officer and President Wade K. Dawe, commented, �Cangold is a strong partner to advance the Ixhuatan Project in the near-term as we remain focused on expanding our Black Fox Mine and advancing the Goldfields Project, both in Canada.�
Brigus would like to thank Sattva Capital Corp. for introducing this opportunity to the Company, facilitating a property visit and exchange of information, and coordinating a meeting between Brigus and Cangold management.
The closing of the transaction with Cangold remains subject to Cangold completing its planned share consolidation and a financing. The transaction, Cangold�s share consolidation and financing are all subject to receiving regulatory approval and approval of the TSX Venture Exchange.
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 CA
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

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.

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