Primero Mining

Cerro Del Gallo Acquisition Info

Creates a diversified, high growth, low cost producer in Mexico with further consolidation opportunities

Primero To Acquire Cerro Del Gallo

December 13, 2012
Toronto, Ontario, December 13, 2012 – Primero Mining Corp. (“Primero” or the “Company”) (TSX:P, NYSE:PPP) today announced that it has entered into a definitive agreement (the "Agreement") with Cerro Resources NL ("Cerro") (ASX: CJO, TSX.V: CJO) whereby Primero will acquire all of the issued and outstanding common shares of Cerro by way of a scheme of arrangement (the "Arrangement") under the Australian Corporations Act 2001. Cerro is an exploration and development company whose principal asset is 69%1 of the feasibility stage Cerro Del Gallo project, a gold-silver deposit with approximately 1.0 million ounces of gold ...
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Building on a Position of
Regional Strength in Mexico

What does this mean for Primero shareholders?

Acquisition Benefits1,2

  • Attractive long-life, precious metals project:
  • Diversifies near term production with additional 95,000 AuEq. oz per year
  • Doubles Reserves and Triples Measured and Indicated Resources
  • Leverages Primero’s regional expertise and solidifies position in Mexico, with further consolidation opportunities
  • Accretive to Primero on key metrics
  • Attractive total acquisition costs
  • Asset diversification reduces risk and volatility in cash flow and earnings
  • Provides opportunity to participate in valuation re-rating as the combination diversifies production and cash flows
(1) Assuming the successful closing of the Cerro Del Gallo acquisition as announced by the Company on December 12, 2012 in the news release “Primero to Acquire Cerro Del Gallo”, available on the Company’s website www.primeromining.com or Sedar www.sedar.com and that it begins production in mid-2015. (2) Assuming Goldcorp Inc. converts their 30.8% position in Cerro Del Gallo to a Net Profit Interest and that resources include reserves. Cerro Resources NL has filed a technical report under National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“ NI 43-101 ”) entitled “Technical Report, First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico” (the “ Technical Report ”) with an effective date of May 11, 2012. Mr. Gabriel Voicu, Vice President, Geology and Exploration , who is a “qualified person” for the purposes of NI 43-101, has reviewed the Technical Report on behalf of Primero. To the best of Primero’s knowledge, information and belief, there is no new material scientific or technical information that would make the Technical Report inaccurate or misleading. Primero plans to file a technical report on the Cerro Del Gallo project within 180 days of December 13, 2012 in accordance with the requirements of NI 43-101.”
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