Apollo Gold, Linear Gold Form New Company

DENVER (AP) — Shareholders of Apollo Gold Corp. and Linear Gold Corp. have approved a plan to combine their operations into a newly formed company called Brigus Gold Corp.

The transaction is expected to close later Friday, creating a company with a fully diluted market capitalization estimated at $205 million Canadian dollars ($196.8 million).

The company is being formed as gold prices have hit all-time highs this year, with more investors seeking safe-haven assets during uncertain economic times.

Under terms of the agreement, Apollo shareholders will own 53 percent of Brigus. Every four Apollo shares will be consolidated into one share in Brigus.

Linear shareholders will receive 1.37 shares of Brigus Gold for every one Linear share. Combined, they will own the remaining 47 percent of Brigus.

Brigus will have total reserves of 2.3 million ounces of gold and own the Black Fox mine in Timmins, Ontario, Canada, and other projects in Canada, Mexico and the Dominican Republic.

It has forecast 2010 production in a range between 90,000 ounces to 100,000 ounces of gold. It expects that to increase to more than 180,000 ounces by 2013.

Wade K. Dawe, president and CEO of Linear, will hold the same positions in Brigus. R. David Russell, CEO and president of Apollo Gold, will resign.

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