DGAP-News: BRAZIL RESOURCES INC. COMPLETES $4.76 MILLION PRIVATE PLACEMENT
(firmenpresse) - DGAP-News: Brazil Resources Inc. / Key word(s): Capital Increase
BRAZIL RESOURCES INC. COMPLETES $4.76 MILLION PRIVATE PLACEMENT
28.12.2011 / 18:35
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Vancouver, British Columbia - Brazil Resources Inc. (the 'Company' or
'Brazil Resources') (TSX-V: BRI, Frankfurt: BSR) is pleased to announce the
successful completion of its previously announced non-brokered private
placement (the 'Private Placement') of 4,324,136 common shares (the
'Shares') at a subscription price of $1.10 per Share for aggregate gross
proceeds of $4,756,550. As previously disclosed, on December 21, 2011, the
Private Placement was increased from $4,000,000 to $4,756,550.
Amir Adnani, Chairman, stated, 'We are very pleased to complete this
Private Placement. Given the difficult market conditions, the completion
of this financing demonstrates a strong vote of confidence for management
and the Company's prospective projects. With the closing, the Company has
more than $10 million in the treasury and is well positioned to further its
exploration efforts and acquisition strategies.'
In connection with the Private Placement, the Company paid cash
commissions equal to 6% on a portion of the gross proceeds derived from the
sale of the Shares to certain arm's length parties, in accordance with the
policies of the TSX Venture Exchange (the 'TSXV'), in the aggregate amount
of $246,213. The Shares issued under the Private Placement are subject to a
hold period expiring on April 24, 2012 in accordance with the rules and
policies of the TSXV and applicable Canadian securities laws and such other
further restrictions as may apply under foreign securities laws.
The Company intends to use the net proceeds of the Private Placement for
exploration expenditures on its current mineral projects in Brazil and the
acquisition and exploration of additional mineral projects, if such
opportunities arise, and for working capital and general corporate
purposes.
The Shares have not been, and will not be, registered under the Securities
Act of 1933 (United States), as amended (the 'U.S. Securities Act'), or any
United States state securities laws and may not be offered or sold in the
United States absent registration or an available exemption from the
registration requirement of the U.S. Securities Act and applicable U.S.
state securities laws. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
the Shares, in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
About Brazil Resources Inc.
Brazil Resources is a publicly listed mineral exploration company with a
focus on the acquisition and development of projects in emerging producing
gold districts in Brazil and other parts of South America. Currently, the
Company is advancing its MontesÁureos, Trinta and Maua Gold Projects
located in the Gurupi Gold Belt in the state of Maranhão in northeastern
Brazil, and its newly acquired Pireneus Gold Project in Goias State, in
central Brazil. Brazil Resources is also seeking to acquire and develop
additional gold properties within Brazil and other locations in South
America.
For additional information, please contact:
Patrick Obara
Telephone: +1 (855) 630-1001
info(at)brazilresources.com
Forward Looking Statements
This news release contains certain forward-looking statements that reflect
the current views and/or expectations of the Company with respect to its
performance, business and future events. Forward-looking statements are
based on the then-current expectations, beliefs, assumptions, estimates and
forecasts about the business and the industry and markets in which the
Company operates, including that: the current price of and demand for
minerals being targeted by the Company will be sustained or will improve;
the Company's current exploration programs and objectives can be achieved;
the Company will be able to obtain required exploration licences and other
permits; general business and economic conditions will not change in a
material adverse manner; financing will be available if and when needed on
reasonable terms; the Company will not experience any material accident;
and the Company will be able to identify and acquire additional mineral
interests on reasonable terms or at all. Forward-looking statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions which are difficult to predict. Investors are cautioned that
all forward-looking statements involve risks and uncertainties, including:
that the Company has a limited operating history; that resource exploration
and development is a speculative business; that the Company may lose or
abandon its property interests or may fail to receive necessary licences
and permits; that the Company's properties are in the exploration stage and
are without known bodies of commercial ore; that the Company may not be
able to obtain all necessary permits and approvals on any of its
properties; that environmental laws and regulations may become more
onerous; that the Company may not be able to raise additional funds when
necessary; potential defects in title to the Company's properties;
fluctuations in currency exchange rates; fluctuating prices of commodities;
operating hazards and risks; competition; potential inability to find
suitable acquisition opportunities and/or complete the same; and other
risks and uncertainties listed in the Company's public filings. These
risks, as well as others, could cause actual results and events to vary
significantly. Accordingly, readers should not place undue reliance on
forward-looking statements and information, which are qualified in their
entirety by this cautionary statement. There can be no assurance that
forward-looking information, or the material factors or assumptions used to
develop such forward looking information, will prove to be accurate. The
Company does not undertake any obligations to release publicly any
revisions for updating any voluntary forward-looking statements, except as
required by applicable securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this news release.
End of Corporate News
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151119 28.12.2011
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Datum: 28.12.2011 - 18:35 Uhr
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