By Rebecca Melvin
New York, March 3 - Brigus Gold Corp. priced $50 million of five-year convertible debentures in a bought deal at par to yield 6.5% with an initial conversion premium of 35%, according to a news release.
The Regulation S deal was made by a syndicate of underwriters led by BMO Capital Markets, and including Haywood Securities Inc., CIBC World Markets Inc., Cormark Securities Inc. and Paradigm Capital Inc.
The conversion price is US$2.45 per Brigus common share and the issue will be listed for trading on the Toronto Stock Exchange.
Proceeds will be used by RMB Australia Holdings Ltd. with the balance used to accelerate exploration drilling at the company's Black Fox Complex and Goldfields Project to undertake an engineering study on the expansion of the Black Fox Mill, to pursue other growth opportunities and for general working capital.
The financing is expected to close March 23, subject to certain conditions, including regulatory approval and approval of the NYSE Amex Exchange and the Toronto Stock Exchange.
The debentures are non-callable until March 31, 2014, and then provisionally callable subject to a 125% price hurdle.
The debentures may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
The gold mining company is based in Greenwood Village, Colo.
| Issuer: | Brigus Gold Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $50 million
|
| Bookrunners: | BMO Capital Markets, and including Haywood Securities Inc., CIBC World Markets Inc., Cormark Securities Inc. and Paradigm Capital Inc.
|
| Maturity: | Five years
|
| Coupon: | 6.5%
|
| Price: | Par, $1,000
|
| Yield: | 6.5%
|
| Conversion premium: | 35%
|
| Conversion price: | $2.45
|
| Conversion ratio: | 408.1633
|
| Call option: | Provisionally callable beginning March 31, 2014 subject to 125% hurdle
|
| Pricing date: | March 3
|
| Settlement date: | March 23
|
| Stock symbol: | NYSE Amex: BRD; Toronto: BRD
|
| Stock reference price: | $1.83 at close March 3
|
| Distribution: | Regulation S
|
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