According to a news release, the two companies have entered an agreement through which Primero will acquire all outstanding shares of Brigus to create a “diversified, Americas-based mid-tier gold producer.”
Amongst the listed benefits of the merger are a diversified production base, critical production scale, solid financial position and exploration opportunity.
“We are pleased to be combining with another established producer, to diversify and build our financial strength and technical expertise while, at the same time, unlocking value for Brigus shareholders,” Wade Dawe, Brigus chair and CEO, said in the release.
“Brigus shareholders will benefit from Primero’s strong balance sheet and cash flow, enabling further investment in the Black Fox mine to realize its full potential and the advancement of the Grey Fox project. The combined company will also benefit from improved market liquidity and Primero’s proven management team with a demonstrated track record of successfully growing precious metals mining companies.”
The announcement comes less than a week after Brigus announced the discovery of a new hanging wall zone at its Grey Fox project in Timmins.
Brigus operates Black Fox Mine and Mill in Timmins, which encompasses the Black Fox Mine and adjoining properties in the Township of Black River‐Matheson. Brigus also owns the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In the Dominican Republic, Brigus has signed an agreement to sell its remaining interests in three mineral exploration projects. In Mexico, Brigus owns the Ixhuatan Project located in the state of Chiapas.