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Primero Mining Corp. (TSX:P,NYSE:PPP), which operates the San Dimas gold mine in Mexico, agreed to buy Canada’s Brigus Gold Corp. (NYSE:BRD,TSX:BRD) for about C$220 million in stock to expand its production, Bloomberg reported.
Primero Mining Corp. (TSX:P,NYSE:PPP), which operates the San Dimas gold mine in Mexico, agreed to buy Canada’s Brigus Gold Corp. (NYSE:BRD,TSX:BRD) for about C$220 million in stock to expand its production, Bloomberg reported.
As quoted in the market news:
Investors will get 0.175 of a Primero share for each Brigus share they hold, Vancouver-based Primero said today in a statement. The offer is valued at C$0.91 per Brigus share, based on Primero’s Dec. 13 closing price in Toronto, and is 45 percent more than Halifax-based Brigus’s closing price.
As part of the deal, Primero will spin out a company with Brigus’s interests in mining projects in Saskatchewan and Mexico. The new company will be 90 percent-owned by Brigus shareholders with Primero investors holding the rest.