Primero Buying Brigus Gold for $208M

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.

Read the full article in Bloomberg Businessweek