Brigus Gold Closes $30 Million Bought Deal Debt Financing
Brigus Gold Corp.
(NYSE MKT: BRD; TSX: BRD)("Brigus" or the
"Company") has completed the previously announced $30 million bought
deal debt financing (the "financing"). The financing was arranged by Casimir Capital for a finance structure fee of 2.77
percent. The $30 million in senior secured debt notes are secured by a lien
against the Company's Black Fox Complex and the Goldfields properties with a
three year term. Principle payments of $2 million will be paid quarterly,
commencing on June 30, 2013. The Notes will bear interest at an annual rate as
calculated below, which shall be paid monthly based on the closing Bloomberg
Composite New York Gold Price from the prior month.
Bloomberg
Composite New York Gold Price (US$/oz)
|
|
Annual
Interest Rate
|
|
From
$0 to $1,799.99
|
|
9%
|
|
From
$1,800 to $1,999.99
|
|
10%
|
|
From
$2,000 to $2,499.99
|
|
12%
|
|
From
$2,500 and above
|
|
14%
|
|
The Company will use $24.4 million of the debt proceeds to repurchase 4 percent
of the existing 12 percent goldstream with Sandstorm
Gold Ltd. ("Sandstorm"). 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.
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 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. Such forward- looking statements
reflect the Company's view with respect to future events (including the
repurchase of the goldstream) and 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 factors disclosed
under the heading "Risk Factors" in Brigus
Gold's 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 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.