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AMEX:BRD $
Brigus Gold Announces C$12,000,000 Private Placement Financing of Flow-Through Shares
7/16/2010
Halifax, Nova Scotia; July 16, 2010– Brigus Gold Corp. (“Brigus Gold” or the “Company”) (TSX and NYSE Amex: BRD) is pleased to announce that it intends to offer up to C$12,000,000 of common shares of the Company designated as flow-through shares for purposes of the Income Tax Act (Canada) (the "Flow-Through Shares") on a guaranteed agency basis at a price of C$1.40 per Flow-Through Share (the “Offering”).
In connection with the Offering, the Company has granted the agent an option, exercisable in whole or in part at any time up until the closing of the financing, to offer for sale an additional C$2,000,000 of Flow-Through Shares at a price of C$1.40 per Flow-Through Share.
The proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses, as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2010. The funds will be used for exploration and development activities at the Company’s Black Fox gold mine and adjoining Grey Fox - Pike River Project in Ontario.
The closing of the Offering is expected to occur on or about July 29, 2010 and is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and other customary conditions.
The Flow-Through Shares will be offered to residents of Canada pursuant to Regulation S of the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Flow-Through Shares have not been registered under the Securities Act, and may not be offered or sold in the United States without registration or pursuant to an applicable exemption from the registration requirements of the Securities Act. The Flow-Through Shares will be subject to a four-month hold period in Canada.
This press release does not constitute an offer to sell, nor is it a solicitation of an offer to buy, securities.
About Brigus Gold
Brigus Gold 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 in the Timmins gold district of Ontario, Canada. The Black Fox Operations encompass the adjoining Grey Fox and Pike River properties, all in the Township of Black River-Matheson, Ontario, Canada. Brigus Gold is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In Mexico, Brigus Gold holds a 100 percent interest in the Ixhuatan Property located in the state of Chiapas, and the Huizopa Joint Venture, an 80 percent interest in an early stage, gold-silver exploration joint venture located in the State of Chihuahua. In the Dominican Republic, Brigus Gold and Everton Resources have a joint venture for the APV and Loma El Mate gold exploration projects.
Contact Information:
Wendy Yang, Vice President of Investor Relations
Phone: 720-886-9656 Ext. 217 Toll Free: 1-877-465-3484
E-mail: info@brigusgold.com
Sean Tufford, Director of Investor Relations
Phone: 902-422-1421 Toll Free: 1-866-785-0456
Email: sean@brigusgold.com
Website: www.brigusgold.com
These securities discussed in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons unless an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and all applicable state securities laws is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States or to, or for the account or benefit of, U.S. persons.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
This news release includes “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “schedules,” “targets,” “predicts,” “intends,” “continue,” or the negative of such terms, or other comparable terminology. All statements regarding the proposed offering of securities and the timing thereof involve various risks and uncertainties. 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: unexpected lower ore grades, additional operational, geotechnical and processing problems at the Black Fox Mine and mill, further toll milling, unexpected changes in business and economic conditions, political or economic instability, significant decreases in gold prices, difficulties or delays in permitting at Black Fox, changes in interest and currency rates, local and community impacts and issues, labor accidents, environmental risks and other factors disclosed under the heading “Risk Factors” in Brigus Gold’s and its predecessor companies’ most recent annual report on Form 10-K filed with the United States Securities and Exchange Commission and elsewhere in Apollo’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.
