Primero Mining & Brigus Gold

Transaction Information

Creates a new Americas focused mid-tier producer with a diversified production base in prospective proven historic mining districts.

February 18, 2014
TORONTO, ONTARIO--(Marketwired - Feb. 18, 2014) - Primero Mining Corp. ("Primero" or the "Company") (TSX:P)(NYSE:PPP) and Brigus Gold Corp ("Brigus" (TSX:BRD)(NYSE:BRD) today announced that both Institutional Shareholder Services Inc. ("ISS") and Glass Lewis & Co. ("GL"), two leading independent proxy advisory firms, have recommended that shareholders support the plan of arrangement between the two companies at their special meetings scheduled for February 27, 2014.
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December 16, 2013
Primero Mining Corp. (“Primero” or the “Company”) (TSX:P, NYSE:PPP, ASX:PPM) and Brigus Gold Corp. (“Brigus”) (NYSE:BRD; TSX:BRD) today announced that they have entered into an arrangement agreement (the "Arrangement Agreement") whereby Primero will acquire all outstanding common shares of Brigus pursuant to a plan of arrangement (the “Arrangement”) to create a diversified, Americas based mid-tier gold producer.
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Building a Strong
Intermediate Producer

What does this mean for Shareholders?

A New Mid-Tier Gold Producer

  • Creates a new Americas focused mid-tier gold producer
    • Diversified production base in prospective, proven historic mining districts
    • Mining friendly jurisdictions with low geopolitical risk
  • Critical production scale and superior growth profile
    • Two mines producing a total of 250,000 to 270,000 gold equivalent ounces1 in 2014E
    • Potentially increasing to roughly 400,000 ounces in 2017E2 with 2 development projects and M&I resources of 4.6 million gold equivalent ounces3
    • Below industry average cash costs resulting in superior cash flow
    • Significant exploration upside at all mines and projects
  • Strong balance sheet and financial performance
    • Sufficient capital to repay all debt and invest in organic growth
    • Strong balance sheet and pro forma market capitalization of approximately $720 million will promote liquidity, increased analytical following and access to capital
    • Combined entity expected to generate approximately $760 million operating cash flow over the next 5 years2,3
  • Creates compelling valuation re-rating opportunity
  1. “Gold equivalent ounces” include silver and copper production converted to a gold equivalent based on consensus estimated commodity prices; accounts for the San Dimas silver purchase agreement; and uses both Companies publically disclosed production estimates.
  2. Assumes San Dimas operates at least at 2,500 tpd from Q1 2014; 100% ownership of Cerro Del Gallo and that it begins production at the end of 2015, with full year production estimated at 95,000AuEq. oz in 2016 and Primero management estimates for Black Fox production, based on 2,200-2,300 tpd operation.
  3. Refer to slides 11, 34, 35, 36, 37 of this presentation.
  4. Estimated five-year after-tax operating cash flow estimated at consensus metals prices (as shown in appendix) and a 63:1 gold:silver ratio and includes recent tax reforms in Mexico