Primero Acquires Goldcorp's Interest in Mexican Gold Mine Project

Primero Mining Corp announced the closing of its acquisition of the remaining 30.8% interest in its Cerro del Gallo Mexican gold-silver-copper development project from a subsidiary of Goldcorp Inc., as previously announced on November 6, 2013.

A payment of US$8 million was made to a subsidiary of Goldcorp Inc. yesterday, December 19, 2013.

By acquiring remaining 30.8% interest in Cerro del Gallo the joint venture agreement ends and as a result administrative costs are reduced and a potential 10% net profit interest eliminated.

The Cerro del Gallo gold-silver-copper development project was acquired by Primero in May, 2013. It is currently the Company's only development project and has the potential to increase the Company's near-term production by approximately 95,000 gold equivalent ounces per year.

Further potential contingency payments based on meeting certain project milestones or market conditions are detailed in the Company's Q3 2013 Management Discussion and Analysis available on the Company's website at www.primeromining.com.  

Last week Primero Mining Corp. announced it had an agreement to purchase Brigus Gold Corp. and enter the Canadian mining scene. The Company has intentions to become an intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in North and Central America.
 

Cautionary Statement on Forward Looking Information

This news story contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business and operations of Primero Mining Corp.

 Forward-looking statements are subject to known and unknown risks. For example, the Company may not be able to become an intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas. Certain of these factors are discussed in greater detail in Primero's registration statement on Form 40-F on file with the U.S. Securities and Exchange Commission, and its most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities is available at www.sedar.com