Brazil Minerals, Inc. Receives Title to 25% of a Company With 10 Mining Concessions for Diamond and Gold
(firmenpresse) - BELO HORIZONTE, BRAZIL -- (Marketwired) -- 02/23/15 -- Brazil Minerals, Inc. (OTCBB: BMIX) (the "Company" or "BMIX") announced today that it has received title to 25% of RST Recursos Minerais, Ltda. ("RST"), a Brazilian company with 10 mining concessions and 12 other minerals rights, all for diamond and gold. The concessions are near the mining concession owned by the Company's subsidiary, Mineração Duas Barras Ltda. ("MDB"). BMIX previously had access to only one mining concession for diamond and gold from MDB.
BMIX paid a total of 250,000 Brazilian real (approximately US$110,000 at the then prevailing exchange rate, or US$87,000 at today's rate) for this 25% acquisition of RST shares. Of this cost, 60% was paid in cash over 5 monthly installments and 40% in restricted stock of the Company.
The sellers of the 25% stake in RST were two Brazilian citizens; the transaction was an arms-length deal negotiated for over six months. Prior to BMIX's acquisition, the last time RST shares had been acquired by a publicly-traded company happened in June 2008, when a Canadian issuer contractually agreed to pay US$10.5 million dollars for 100% of RST. This Canadian buyer paid US$2 million to the sellers, and subsequently was unable to pay the remainder. RST was never explored by it or other owners since then and its mining concession areas have remained essentially untouched.
Marc Fogassa, Chairman and CEO of BMIX, commented, "The mild slowdown in the Brazilian economy has made certain local property owners need to raise cash, and that has created several likely accretive opportunities for us, as in this acquisition."
RST mining concessions and minerals rights are located on the banks of the Jequitinhonha River, a well-known alluvial diamond and gold area for the last two centuries, near MDB's areas and plant. RST has no operational plant or workers at this time, and any eventual mining in an RST area could possibly be processed at MDB's plant.
The Company believes that its shareholders will benefit from this transaction as BMIX now has participation in 11 mining concessions, whereas before it had only one from MDB. Mining concessions are the highest level of mineral rights in Brazil. They permit the owner to mine and commercialize specified minerals in perpetuity, as long as continuous observance of the mining code is followed. The cost of obtaining a mining concession from scratch can reach hundreds of thousands of dollars and take in excess of five years.
Brazil Minerals, Inc. (OTCBB: BMIX) is a U.S. publicly-traded company with current revenues from sales of rough and polished diamonds, gold, and sand.
Our intention is to continue to grow and become a premier diversified and profitable company focused on Brazil. We believe that our team is our main strength. Our team combines over 100 years of Brazilian business expertise and strong American experience in finance, private equity and venture capital.
BMIX owns 100% of Mineração Duas Barras Ltda. ("MDB"), a Brazilian producer and seller of polished and rough diamonds, gold bars, and industrial-use sand. MDB operates a fully-operational mining concession with the largest alluvial processing plant for diamonds and gold in Latin America, and has the Brazilian permit to export its production.
BMIX also owns 25% of RST Recursos Minerais, Ltda. ("RST"), a Brazilian company with 10 mining concessions and 12 other mineral rights for diamond and gold. The RST areas are located near MDB's plant, in the Jequitinhonha River valley, a well-known area for diamonds and gold for over two centuries.
Our goal is to become an attractive and liquid alternative for investment in Brazil, the 6th largest global economy.
More information on BMIX can be found at .
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals, Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
We advise U.S. investors that while these terms and amounts are recognized by Canadian regulations, the U.S. Securities and Exchange Commission ("SEC") does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.
We advise U.S. investors that while these terms and amounts are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.
We advise U.S. investors that while sand volume and weight terms and amounts as filed in Brazil are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part of such are not considered mineral reserves as defined by the U.S.'s Industry Guide 7.
Marc Fogassa
(213) 590-2500
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Datum: 23.02.2015 - 15:07 Uhr
Sprache: Deutsch
News-ID 373431
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Mining & Metals
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