Brazil Resources, Inc. (OTCQX: BRIZF) is engaged in the acquisition, exploration, and development of mineral projects across North and South America. Shares of the mineral mining company are rallying 12.31%, through early trading on Tuesday, November 15, 2016. Over the past three months, Brazil Resources, Inc. has seen average daily volume of 490,333 shares. Through early trading on Tuesday, Brazil Resources, Inc. is seeing volume of nearly 249,000 shares or dollar volume of $400,890.
The rally comes after Brazil Resources, Inc. releases details on the completion of a second round of private placement funding. Both rounds of private placement funding has provided the company with net proceeds of $10.75 million. Brazil Resources, Inc. now has cash holdings of $20 million that will be used to engage in acquisitions and foster growth. Here is the full press release detailing of the private placements:
Brazil Resources, Inc. Press Release:
VANCOUVER , Nov. 14, 2016 /CNW/ – Brazil Resources, Inc. (the “Company” or “Brazil Resources“) (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce that, further to its press releases dated November 8, 2016 , it has completed the second tranche (the “Second Tranche“) of its previously announced private placement (the “Private Placement“) for additional gross proceeds of $4,304,690 at a price of $2.50 per unit (the “Units“).
The gross proceeds received by the Company under the Private Placement to date amount to $10,756,520 which brings the Company’s cash on hand to approximately $20.0 million as of the date hereof. The Company intends to use proceeds from the Private Placement to bolster its ongoing acquisition strategy and for general working capital needs.
Pursuant to the Second Tranche, the Company issued 1,721,876 Units, with each unit consisting of one common share of the Company and one half of a common share purchase warrant, with each full warrant entitling the holder thereof to acquire one common share of the Company at an exercise price of $3.50 up to three years after the issuance thereof.
In connection with the Second Tranche, the Company has agreed to pay a finder’s fee of $39,555 , being equal to 6% of the gross proceeds in connection with 263,700 Units issued under the Second Tranche, to an arm’s length party in accordance with the policies, and subject to approval, of the TSX Venture Exchange (the “TSXV“).
The Company expects to complete a third and final tranche of the Private Placement of up to 200,000 Units for additional gross proceeds of up to $500,000. Together with the completed tranches of the Private Placement this represents an increase of the Private Placement from $9.0 million, as announced on November 8, 2016, to $11,250,000.
Closing of the balance of the Private Placement is subject to receipt of all necessary approvals, including approval of the TSXV and receipt of definitive subscriptions. The securities issued under the Private Placement will be subject to a four month hold period from the date of issuance, in the case of the Second Tranche, expiring March 15, 2017, in addition to any other restrictions under applicable law.
The Units, common shares and warrants, including common shares issuable upon valid exercise of the warrants, have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any U.S. 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.
About Brazil Resources, Inc.
Brazil Resources Inc. is a public mineral exploration company with a focus on the acquisition, exploration and development of projects in Brazil, United States, Canada and other regions of the Americas. Brazil Resources is advancing its Titiribi Gold Copper Project, located in Colombia, Whistler Gold-Copper Project, located in Alaska, United States, Cachoeira and São Jorge Gold Projects, located in the State of Pará, northeastern Brazil and Rea Uranium Project, located in the western Athabasca Basin in northeast Alberta, Canada.