The Company is also pleased to announce that it has secured $30 million in debt financing. $26.4 million of the debt proceeds will be used to repurchase 4 percent of the existing 12 percent goldstream with Sandstorm Gold Ltd. (“Sandstorm”). The debt financing was arranged by Casimir Capital and a finance structure fee is payable in exchange for Casimir's services.
Under the agreement with Sandstorm, the Company may repurchase up to 6 percent of the goldstream until January 1, 2013. Brigus will make a decision on the remaining 2 percent prior to the end of the year.
“We are pleased with the growth in gold production at Black Fox during the third quarter.” said Wade Dawe, Brigus' President and CEO. “Gold production continues to increase quarter over quarter as expected. Brigus' repurchase of the goldstream is an accretive transaction providing an immediate and advantageous increase in cash flow."
Production from the underground portion of the Black Fox mine is steadily increasing as crews develop and access larger ore zones at depth.
The open pit continues to perform as expected. Phase 3 overburden removal has commenced and production from Phase 3 is scheduled to begin in 2013.
The mill processed 190,879 tonnes of ore at an average grade of 3.34 grams of gold per tonne and an average recovery of 95.1 percent in the quarter. Throughput averaged 2,075 tonnes per day.
| Ounces Produced | Average Grade | |||||
| Q1 | 16,922 | 3.04 | ||||
| Q2 | 18,254 | 3.30 | ||||
| Q3 | 19,526 | 3.34 | ||||
| Total | 54,702 | 3.23 |
OUTLOOK
Brigus continues to forecast full year gold production of 77,000 to 85,000 ounces for 2012:
| 2012 | Low | High | Actual | |||
| Q1 | 15,500 | 17,000 | 16,922 | |||
| Q2 | 18,000 | 21,000 | 18,254 | |||
| Q3 | 21,500 | 23,000 | 19,526 | |||
| Q4 | 22,000 | 24,000 | ||||
| Total | 77,000 | 85,000 |
About Brigus Gold
Brigus is a growing Canadian 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, the new Grey Fox property and adjoining properties in the Township of Black River-Matheson, Ontario, Canada. The Black Fox Mine is in production and the Grey Fox Mine, located four kilometres from Black Fox is in development. Brigus is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In Mexico, Brigus owns the Ixhuatan Project located in the state of Chiapas. 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 ability of the Company to achieve its production, total cash costs, steady state annual production and mining rate estimates; estimated average gold grades for the open pit and underground operations; increase in gold production; increase in profitability; exploration drill results and resource additions, are forward-looking statements and estimates that involve various risks and uncertainties. This forward-looking statements include, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the outcome of legal proceedings, the issue of permits, the size and quality of the Company's mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, and the financial results of the Company.
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' most recent Annual Information Form and Management Discussion and Analysis filed under the Company's name at www.sedar.com and annual report on Form 40-F filed with the United States Securities and Exchange Commission at www.sec.gov as well as elsewhere in Brigus' documents filed from time to time with the Toronto Stock Exchange, the NYSE Amex Equities, 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.
Brigus Gold
Jennifer Nicholson, CA, 902-442-7186
Executive Vice President
jnicholson@brigusgold.com
or
Kate Wood, 902-442-7184
Manager, Stakeholder Relations
kwood@brigusgold.com
No comments:
Post a Comment