(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
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.