Primero Mining Acquiring Brigus Gold
The companies’ development projects include Primero’s Cerro del Gallo project in Guanajuato state, Mexico, and Brigus’ Grey Fox project 4 km from its Black Fox mine in Ontario. These projects provide the potential for production from the combined company to grow to about 400,000 gold equivalent oz/y by 2017.
Brigus’ interests in the Goldfields project in Saskatchewan and the Ixhuatán and Huizopa projects in Mexico will be spun-off into a new company that will be capitalized with approximately C$10 million in cash.
The proposed transaction requires approval by at least two-thirds of the votes cast by Brigus shareholders at a special meeting. The issuance of Primero common shares in connection with the proposed transaction will require the approval of a majority of the shareholders of Primero voting at a special meeting. Goldcorp, which holds approximately 27% of the outstanding Primero common shares, has agreed to vote in favor of the proposed transaction.
Assuming completion of the transaction, Primero shareholders and Brigus shareholders will own approximately 73.4% and 26.6%, respectively, of Primero.