TORONTO, ONTARIO–(Marketwired
– March 5, 2014) –
or the “Company”)
successful completion of the previously announced plan of arrangement
(“Arrangement”), whereby Primero has acquired all of the outstanding
shares of Brigus Gold Corp. (“Brigus”). Brigus’ principal
assets are the wholly owned Black Fox mine and mill, and adjoining properties,
Grey Fox and Pike River in the Timmins Gold District of
Canada
As of today, and including
the 41,340,664 Primero common shares issued as consideration under the
Arrangement to the former shareholders of Brigus, Primero has 157,166,699
common shares issued and outstanding. An additional 2,729,558 common shares
have been reserved for issuance in connection with new Primero options issued
to the former option holders of Brigus pursuant to the Arrangement.
“The closing of the
Brigus transaction transforms Primero into a diversified,
based mid-tier gold producer with a pipeline of growth projects,” stated Joseph
Conway , President and Chief Executive Officer. “Primero now has
two producing mines with a critical production scale of approximately 250,000
gold equivalent ounces in 2014 at below average costs. It also has a peer
leading growth profile as production is expected to increase to around 400,000
gold equivalent ounces by the end of 2016 with the completion of our current
expansion project at
Dimas
make a positive construction decision in mid-2014. The Black Fox mine provides
Primero entry into a historic and prospective gold belt and leverages our
technical expertise in underground mining. Furthermore our balance sheet
remains strong and our market capitalization and liquidity have improved
providing exposure to a broader group of investors. We welcome Brigus
shareholders and look forward to investing in the Black Fox and Grey Fox assets
to create significant value for all of our stakeholders.”
Confirmations of holdings
will be sent shortly to former Brigus shareholders and optionholders receiving
consideration pursuant to the Arrangement. Former Brigus shareholders as a
group were also recently granted 90.1% of the ordinary shares of the newly
incorporated Fortune Bay Corp. (“Fortune Bay”). Pursuant
to the Arrangement, Fortune Bay assumed Brigus’ non
interests including the Goldfields Project in
and the Ixhuatán and Huizopa Projects in
It is expected that Brigus’ shares will cease trading and will be delisted from
the Toronto Stock Exchange (“TSX”) and the New York Stock
Exchange MKT (“NYSE MKT”) in approximately 2-3 business days in
accordance with the rules of the TSX and NYSE MKT.
About Primero
Mining Corp.
the
gold-silver mine and 100% of the Cerro del Gallo gold-silver-copper development
project in
Primero offers immediate exposure to un-hedged, low cash cost gold production
with a substantial resource base in a politically stable jurisdiction. The
Company has intentions to become an intermediate gold producer by building a
portfolio of high quality, low cost precious metals assets in the
Primero’s website is www.primeromining.com.
CAUTIONARY STATEMENT ON
FORWARD-LOOKING INFORMATION
This news release contains
“forward-looking statements”, within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation, concerning the business and operations of
Mining Corp.
“Primero” or the “Company”). All statements, other than
statements of historical fact, are forward-looking statements. Generally,
forward-looking statements can be identified by the use of forward-looking
terminology such as ” is expected”, “expects”, “has
intentions to”, “to become”, “look forward to”,
“will be” or variations of such words and phrases or statements that
certain actions, events or results.
The assumptions made by the
Company in preparing the forward-looking information contained in this news
release, which may prove to be incorrect, include, but are not limited to: the
expectations and beliefs of management; the specific assumptions set forth
above in this news release; that the Company will be able to realize the
anticipated 2014 production; the anticipated production growth; that the
Company will expand
Dimas
respecting the Cerro del Gallo project in mid-2014; that the political
environment within
will continue to support the development of environmentally safe mining
projects and that Brigus shares will be delisted from the TSX and NYSE MKT in
approximately 2-3 business days.
Forward-looking statements
are subject to known and unknown risks, uncertainties and other important
factors that may cause the actual results, performance or achievements of
Primero to be materially different from those expressed or implied by such forward-looking
statements, including: that the Company may not realize anticipated production;
that costs may not be below average; the Company may not expand
Dimas
development may be delayed; the Company may not be able to become an
intermediate gold producer by building a portfolio of high quality, low cost
precious metals assets in the
Certain of these factors are discussed in greater detail in Primero’s
registration statement on Form 40-F on file with the U.S. Securities and
Exchange Commission, and its most recent Annual Information Form on file
with the Canadian provincial securities regulatory authorities and available at
www.sedar.com.
Should one or more of these
risks and uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
forward-looking statements. In addition, although Primero has attempted to
identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Forward-looking
statements are made as of the date hereof and accordingly are subject to change
after such date. Forward-looking statements are provided for the purpose of
providing information about management’s current expectations and plans and
allowing investors and others to get a better understanding of our operating
environment. Primero does not undertake to update any forward-looking
statements that are included in this document, except in accordance with
applicable securities laws.
Contact Information:
VP, Investor Relations
(416) 814 3168
[email protected]
