Huizopa Project |
| Chihuahua, Mexico |
|
Brigus has a 3% Net Smelter Royalty ("NSR") in the Huizopa gold-silver early stage exploration project, located in the Sierra Madre Occidental mountains in Chihuahua, Mexico. In December 2010, Brigus entered into a sale agreement pursuant to which Brigus has sold its 100% interest in its Mexican subsidiary, Minera Sol de Oro, S.A. de C.V. and its joint venture in the Huizopa Project to the Cormack Capital Group, LLC for proceeds of US$3.5 million, payable over a five-year term, while Brigus retains a 3% NSR over future production from the Huizopa Project.
Cormack can reduce Brigus' NSR to 2% by making a US$1.0 million payment to Brigus and may also elect to pay up to 40% of the purchase price through the issuance of common shares in a publicly traded company listed on a recognized U.S. or Canadian national stock exchange. In addition, Brigus will receive a production bonus payment of US$5.0 million within one year of the commencement of commercial production at the Huizopa Project. |