Brigus Gold Completes Option of 75% Interest in Its Ixhuatan Gold Project in Mexico
7 hours ago by Business Wire
Brigus Gold Corp. ("Brigus" or the "Company") (NYSE Amex: BRD)(TSX: BRD) announces that Cangold Limited ("Cangold") has received regulatory and TSX Venture Exchange approval and has completed its previously announced transaction with Brigus. The terms of the transaction provide Cangold with the option to acquire a 75% interest in Brigus' Mexican subsidiary (the "transaction") that owns the Ixhuatan gold project ("Ixhuatan Project"), an advanced exploration stage project located in Chiapas, Mexico.
Cangold has filed an updated Canadian National Instrument 43-101 report on the project (P. Secombe, May 18, 2011) and has completed a definitive option agreement with Brigus. Pursuant to the terms of the transaction, Cangold has paid Brigus Cdn$1.0 million and has issued 6.0 million Cangold shares to acquire the initial option and will be required to pay Brigus Cdn$1.0 million and issue 6.0 million Cangold shares after 12 months and an additional Cdn$3.0 million and 4.0 million Cangold shares after 24 months. To exercise its option and acquire a 75% interest in the Ixhuatan Project, Cangold will then be required to pay Brigus Cdn$5 million and issue 4.0 million Cangold shares as well as complete an independent third-party feasibility study on the Campamento Deposit within 36 months. Following Cangold's exercise of the purchase option, 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. Brigus will retain a 2% Net Smelter Return royalty over the project and upon commencement of commercial production, will also receive a payment of Cdn$5.00 per ounce of gold in the Proven and Probable category included in the feasibility study.
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 has completed its transaction to sell a 75% interest in the Ixhuatan Project located in the state of Chiapas to Cangold. 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 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.
SOURCE: Brigus Gold Corp.
Cangold has filed an updated Canadian National Instrument 43-101 report on the project (P. Secombe, May 18, 2011) and has completed a definitive option agreement with Brigus. Pursuant to the terms of the transaction, Cangold has paid Brigus Cdn$1.0 million and has issued 6.0 million Cangold shares to acquire the initial option and will be required to pay Brigus Cdn$1.0 million and issue 6.0 million Cangold shares after 12 months and an additional Cdn$3.0 million and 4.0 million Cangold shares after 24 months. To exercise its option and acquire a 75% interest in the Ixhuatan Project, Cangold will then be required to pay Brigus Cdn$5 million and issue 4.0 million Cangold shares as well as complete an independent third-party feasibility study on the Campamento Deposit within 36 months. Following Cangold's exercise of the purchase option, 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. Brigus will retain a 2% Net Smelter Return royalty over the project and upon commencement of commercial production, will also receive a payment of Cdn$5.00 per ounce of gold in the Proven and Probable category included in the feasibility study.
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 has completed its transaction to sell a 75% interest in the Ixhuatan Project located in the state of Chiapas to Cangold. 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 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.
SOURCE: Brigus Gold Corp.
Brigus Gold Corp. Jennifer Nicholson CA Vice President, Investor Relations 902-422-1421 ir@brigusgold.com
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