Primero Mining makes $220-million all-stock deal to acquire Brigus Gold | iNFOnews | Thompson-Okanagan's News Source

Current Conditions


Primero Mining makes $220-million all-stock deal to acquire Brigus Gold

December 16, 2013 - 4:50 AM

TORONTO, Cananda - Primero Mining Corp. (TSX:P) has a friendly deal to acquire Brigus Gold Corp. (TSX:BRD) in an all-stock transaction valued at about $220 million.

The enlarged Primero would produce the equivalent of 250,000 to 270,000 ounces of gold next year from two producing mines and has the potential to produce 400,000 gold-equivalent ounces by 2017.

The deal values Brigus shares at 91 cents each — a 45 per cent premium to the market price — based on the Primero's closing price of $5.22 on the Toronto Stock Exchange on Friday.

Brigus shareholders would own about 26.6 per cent of Primero's equity after the transaction and 90.1 per cent of a new company that will be spun off with some Brigus assets.

The companies haven't assigned a value to SpinCo.

Under the deal, each outstanding Brigus common will be exchanged for for 0.175 of a Primero common share and 0.1 of a common share of SpinCo.

All outstanding options to purchase Brigus common shares will be exchanged for options to purchase Primero and SpinCo shares at the same ratios as the stock exchange.

News from © The Canadian Press, 2013
The Canadian Press

  • Popular kelowna News
View Site in: Desktop | Mobile