TORONTO, ON--(Marketwired - January 23, 2018) - BRIO GOLD INC. (TSX: BRIO) ("BRIO GOLD" or the "Company") today responded to the announcement by Leagold Mining Corporation ("Leagold") that it intends to make an offer to acquire all of the outstanding shares of Brio Gold.
The Board of Directors and the Special Committee of Brio Gold, together with their advisors, will review Leagold's proposed offer and respond in due course. Brio Gold had previously engaged CIBC World Markets Inc. and National Bank Financial Inc., as co-financial advisors, and Davies Ward Phillips & Vineberg LLP, as legal advisor.
Gil Clausen, Brio Gold's President and CEO, commented, "It is not surprising that strategic interest has surfaced in Brio Gold given the high-quality assets within our portfolio and the fact that the Company is extremely undervalued. For these reasons, we must protect the interests of our shareholders and consider all alternatives to maximize shareholder value."
Shareholders are urged not to take any action or make any decision with regard to the Leagold offer until the Board of Directors has had the opportunity to fully review the Leagold offer and to make a recommendation as to its merits. Shareholders will be promptly notified of any recommendation of the Board of Directors through a news release and circular in accordance with applicable securities law.
About Brio Gold
Brio Gold is an established Canadian mining company with significant gold producing, development and exploration stage properties in Brazil. Brio Gold's portfolio includes three operating gold mines and a fully-permitted, fully-constructed mine that was on care and maintenance and currently is in development to be re-started at the end of 2018. Brio Gold is expected to produce 205,000 to 235,000 ounces of gold in 2018 and at full run-rate is expected to produce approximately 400,000 ounces of gold annually in 2019.
