Brigus Gold Corp.
TSX : BRD
NYSE Amex : BRD

Brigus Gold Corp.

March 03, 2011 16:15 ET

Brigus Gold Announces a US$50 Million Bought Deal of Senior Unsecured Convertible Debentures

HALIFAX, NOVA SCOTIA--(Marketwire - March 3, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Brigus Gold Corp. ("Brigus" or the "Company") (TSX:BRD)(NYSE Amex:BRD) has entered into an agreement with a syndicate of underwriters for a bought deal financing for US$50 million principal amount of senior unsecured convertible debentures (the "Convertible Debentures") by way of short-form prospectus in all provinces and territories of Canada, excluding Quebec. The syndicate is led by BMO Capital Markets and includes Haywood Securities Inc., CIBC World Markets Inc., Cormark Securities Inc. and Paradigm Capital Inc.

Highlights

  • Interest rate of 6.5% per year, payable semi-annually in arrears on the last day of March and September
  • Maturity date: March 31, 2016 (five years)
  • Redemption right after 3 years
  • Conversion price of US$2.45 per Brigus common share, representing approximately a 35% premium to the last trade of US$1.83 on March 3, 2011
  • Issue price of US$1,000 per Convertible Debenture and will be listed for trading on the Toronto Stock Exchange.

The net proceeds will be used to completely repay the existing project debt facility of US$22 million held by RMB Australia Holdings Limited with the balance used to accelerate exploration drilling at the Company's Black Fox Complex and Goldfields Project to undertake an engineering study on the expansion of the Black Fox Mill, to pursue other growth opportunities and for general working capital purposes.

Brigus Chief Executive Officer and President Wade K. Dawe said, "We are pleased to announce this bought deal financing which enables our Company to further strengthen the balance sheet while providing financial flexibility for growth. At the Black Fox Complex, we are nearing completion of the new portal and ramp for our underground mine to begin producing ore at more than 250 tonnes per day by the end of the month. The commissioning of the underground mine will augment open pit production for increasing gold production quarter over quarter through the remainder of 2011." 

The financing is expected to close on or about March 23, 2011, subject to certain conditions, including regulatory approval and approval of the NYSE Amex Exchange and the Toronto Stock Exchange. The Convertible Debentures will be direct, senior unsecured obligations of the Company.

The Convertible Debentures will be convertible, at the option of the holder, into common shares of Brigus at a conversion rate of 408.1633 common shares per US$1,000 principal amount of Convertible Debentures, which is equal to a conversion price of US$2.45 per common share.

The Debentures will become redeemable at the option of the Company from March 31, 2014. Subsequent to March 31, 2014, and prior to the Maturity Date, the Debentures may be redeemed in whole or in part from time to time at the option of the Company on not more than 60 days and not less than 30 days prior notice, at a price equal to their principal amount plus accrued and unpaid interest, provided that the weighted average trading price of the common shares on The Toronto Stock Exchange for the 20 consecutive trading days ending five trading days preceding the date on which the notice of redemption is given is at least 125% of the Conversion Price.

This press release shall not constitute an offer to sell or solicitation of an offer to buy the Convertible Debentures in any jurisdiction. The Convertible Debentures will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

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.

Cautionary and Forward-Looking Statements

This news release includes "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements regarding the Company's ability to successfully expand the Contact Zone, add to the Black Fox gold mineral resource, the timing for advancement of the Contact Zone into production, leverage projects with the existing infrastructure, advance new discoveries, and continue to obtain positive down dip continuity of significant gold mineralization are forward-looking statements and estimates that 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 Gold's and its predecessor companies' most recent annual report on Form 10-K filed with the United States Securities and Exchange Commission and elsewhere in Brigus Gold's documents filed from time to time 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.

Contact Information

  • Brigus Gold Corp.
    Wendy Yang, Vice President of Investor Relations
    303-524-3203
    ir@brigusgold.com