Brazil Resources Inc. (OTCQX; BRIZF) engages in the exploration, acquisition, and mining of mineral and precious metal mining projects in North and South America. Shares of the mining company are rallying 14.50% during early morning trading. Over the past month, Brazil Resources Inc has seen average daily volume of around 516,806 shares. However, nearly 454,300 shares or dollar volume of $885,885, has already exchanged hands through early trading on Friday, September 2, 2016.
Shares of the Brazilian mining company are rallying today, after management released a notice that Brazil Resources Inc has completed its acquisition of the Titiribi Gold-Copper Project from NovaCopper. Brazil Resources Inc will hold 100% interest in the acquired mining properties. The purchase was said to consist of 5 million shares of common Brazil Resources Inc stock and a 1 million share warrant that has a two-year life and an exercise price of $3.50 per share. Here is the press release detailing of the completed acquisition:
Brazil Resources Inc Press Release:
- The project hosts several styles of mineralization including gold-copper porphyry and associated epithermal gold mineralization in nine zones identified to date;
- Approximately 144,779 metres of diamond drilling over 270 holes has been completed on the project;
- The Company has commissioned a National Instrument 43-101 technical report and resource estimate for the project;
- Total consideration under the transaction consisted of 5 million common shares and 1 million share purchase warrants;
- The common shares issued at closing represent less than 5% dilution to existing BRI shareholders;
- Nearby gold projects in development or in production include AngloGold’s Ashanti’s Quebradona, B2Gold’s Gramalote, Continental Gold’s Buritica, Red Eagle’s San Ramon, and Gran Colombia’s Marmato projects; and
- Completion of the transaction represents another significant advance in Brazil Resources’ targeted growth strategy.
VANCOUVER , Sept. 1, 2016 /CNW/ – Brazil Resources Inc. (“Brazil Resources” or the “Company”) (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce that it has completed the acquisition of Sunward Investments Limited, which owns 100% of the Titiribi Gold-Copper Project (the “Titiribi Project”), from NovaCopper Inc. (“NovaCopper”) pursuant to the terms of the share purchase agreement (the “Agreement”) between the parties previously announced by the Company on August 18, 2016 .
Amir Adnani , Chairman of Brazil Resources, commented: “We are very pleased to complete the acquisition of the Titiribi Project, which we anticipate will deliver significant value accretion to our shareholders. The Company continues to execute on its stated mandate to uncover opportunities and acquire quality gold assets.”
Garnet Dawson , CEO of Brazil Resources, further added: “Brazil Resources’ geological team is very excited about the potential of the Titiribi Project, which has been the subject of a significant amount of historical drilling and exploration work. Our team is now working towards identifying areas for follow-up exploration and we have also commissioned an independent National Instrument 43-101 technical report and resource estimate on the Titiribi Project that will be completed in the near future. We look forward to providing further updates as we progress the project.”
Pursuant to the Agreement, Brazil Resources acquired all of the shares of Sunward Investments Limited, which indirectly owns 100% of the Titiribi Project. The total consideration payable by Brazil Resources to NovaCopper consisted of 5,000,000 common shares of Brazil Resources (the “BRI Shares”) and 1,000,000 share purchase warrants, with each warrant exercisable into a BRI Share at an exercise price of $3.50 per share for a period of two years, subject to acceleration by Brazil Resources in certain circumstances.
The BRI Shares to be issued under the transaction are subject to certain resale restrictions pursuant to the terms of the Agreement.
Haywood Securities Inc. (“Haywood”) advised the parties in connection with the transaction. In connection therewith, the Company has paid Haywood an advisory fee of $135,441 , which was satisfied by the Company by issuing 61,288 BRI Shares concurrently with the closing of the transaction.
The Titiribi Project
The Titiribi Project is located in Central Columbia, approximately 70 kilometres southwest of the city of Medellin in the department of Antioquia and is comprised of one concession that covers an area of approximately 39.19 square kilometres. The project is located between 1,200 to 2,200 metre elevations, below the elevation of the Páramo tropical mountain ecosystems, and is road accessible by paved highway from Medellin , with high power electrical lines passing within three kilometres.
The project occurs within the Mid-Cauca Porphyry Belt and consists of several near surface bulk tonnage gold-copper porphyry and associated epithermal gold systems. A total of 270 diamond drill holes, totaling 144,779 metres, have been drilled at the Titiribi Project, with nine mineralized areas identified to date.
The Mid-Cauca Porphyry Belt hosts several gold projects in development or production in the last decade, including AngloGold’s Ashanti’s Quebradona, B2Gold’s Gramalote, Continental Gold’s Buritica, Red Eagle’s San Ramon, and Gran Colombia’s Marmato projects. This has largely coincided with the government encouraging foreign development in a region that has not seen, until recently, the implementation of modern exploration programs.
Paulo Pereira , President of Brazil Resources has reviewed and approved the technical information contained in this news release. Mr. Pereira holds a Bachelors degree in Geology from Universidade do Amazonas in Brazil , is a Qualified Person as defined in National Instrument 43-101 and is a member of the Association of Professional Geoscientists of Ontario .
About Brazil Resources Inc.
Brazil Resources Inc. is a public mineral exploration company focused on the acquisition and development of gold projects in Brazil and other regions of the Americas. Brazil Resources is advancing its Cachoeira and São Jorge Gold Projects located in the State of Pará, northeastern Brazil , its Whistler Gold-Copper Project located in the state of Alaska , United States of America , and its Rea Uranium Project in the western Athabasca Basin in northeast Alberta, Canada.