This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Brigus Gold Agrees To Sell Calais Notes For USD $6.0 Million

Stocks in this article: BRD

(NYSE Amex: BRD; TSX: BRD) – Brigus Gold Corp. (“Brigus” or the “Company”) has entered into an agreement with New West Capital to sell the outstanding Calais Notes (“Notes”) for USD $6.0 million. To date, Brigus has received payments totaling USD $500,000. On June 30, 2012, the company will receive an additional USD $1.0 million followed by the remaining USD $4.5 million, payable on August 31, 2012.

The Notes were originally acquired as consideration when the Company sold a non-core asset in 2010 and were originally valued and recorded at $3.4 million in Brigus’ accounts. When combining the $1.2 million that was repaid in 2011 from Calais Resources Inc. with the proceeds from this sale, the Company will receive a total of $7.2 million in cash resulting in a $3.8 million gain on sale of these Notes.

Proceeds of the sale will be used to buy back one percent of the gold stream on the Black Fox Mine. In 2010, Brigus entered into a gold stream agreement for 12 percent of the gold production from the Black Fox Mine for an upfront payment of $56.3 million and an ongoing per ounce payment of $500. Brigus has the option to reduce the gold stream to six percent for a cost of $36.6 million. The company plans to exercise this option and is currently investigating other non-dilutive ways to fund a repurchase of the remaining five percent.

“We are very pleased to have sold these Notes at a significant premium to our book value,” said Wade Dawe, Brigus’ President and CEO. “This sale will enable us to begin buying back half of the gold stream.”

For full details on the Sandstorm agreement please visit the Company’s website at or SEDAR.

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 has granted Cangold Limited the option to acquire a 75% interest in the Company’s 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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,265.83 -151.02 -0.87%
S&P 500 2,007.56 -13.69 -0.68%
NASDAQ 4,663.9810 -19.4260 -0.41%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs