Brigus Gold Corp. has entered into an agreement with Sandstorm Resources Ltd. to sell some of its gold production from the Black Fox Mine in Matheson.
Brigus Gold, based in Nova Scotia, resulted from a merger in July with Apollo Gold and Linear Gold Corp., resulting in the acquisition of the Black Fox Mine. In order to eliminate its forward gold sales contract obligations, it will sell gold from the Black Fox at spot prices going forward, according to a Nov. 9, 2010 press release.
Beginning January 2011, Sandstorm will purchase 12 per cent of the gold production and 10 per cent of future production from the Black Fox Extension covering a portion of the adjoining Pike River property. A payment of US$56.3 million will be made, allowing Brigus to become an unhedged gold producer. Ongoing payments of $500 per ounce will begin in 2013, not to exceed two per cent per annum.
Sandstorm Resources is a resource-based company that helps other companies grow their businesses while acquiring assets in the process.
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