Highlights:
- 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."
The Transaction
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.
Forward Looking Statements
This document contains certain forward-looking statements
that reflect the current views and/or expectations of Brazil
Resources with respect to its business and future events, including
expectations respecting the Titiribi Project and any future
exploration programs and other work on the Titiribi Project.
Forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about
the business and the markets in which Brazil Resources operates,
including that Brazil Resources will confirm historical exploration
results and the results. Investors are cautioned that all
forward-looking statements involve risks and uncertainties,
including: the inherent risks involved in the exploration and
development of mineral properties, the uncertainties involved in
interpreting drill results and other exploration data, the
potential for delays in exploration or development activities, the
geology, grade and continuity of mineral deposits, the possibility
that future exploration, development or mining results will not be
consistent with Brazil Resources' expectations, accidents,
equipment breakdowns, title and permitting matters, labour disputes
or other unanticipated difficulties with or interruptions in
operations, fluctuating metal prices, unanticipated costs and
expenses, uncertainties relating to the availability and costs of
financing needed in the future, including to fund any exploration
programs on the Titiribi Project and that Brazil Resources may not
be able to confirm historical exploration results or complete an
updated resource estimate for the Titiribi Project. These risks, as
well as others, including those set forth in Brazil Resources' filings with Canadian
securities regulators, could cause actual results and events to
vary significantly. Accordingly, readers should not place undue
reliance on forward-looking statements and information. 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. Brazil Resources 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, the Toronto Stock Exchange
nor their Regulation Services Providers (as that term is defined in
the policies of the TSX Venture Exchange and the Toronto Stock
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
SOURCE Brazil Resources Inc.