2014-01-13 17:24:21 - Brazil Minerals, Inc. (OTCQB: BMIX) (the "Company" or "BMIX"), is a diversified mining company with revenues generated from the sale of rough and polished diamonds as well as gold.
BMIX also has various ownership interests in gold, titanium, vanadium, and iron projects in Brazil. The Company announced today that it had closed a transaction with a U.S. family trust in which it received funding directed at the purchase of capital equipment which will be used primarily at its Mineracao Duas Barras Ltda. ("Duas Barras") gold and diamond mining property in Brazil. The equipment purchased with these funds will be used to replace expensive rented equipment currently operating on the Duas Barras property.
Marc Fogassa, Chairman and CEO of BMIX, commented, "With this capital equipment financing, we are able to buy pre-selected items of capital machinery, such as an excavator and a bulldozer. We will capitalize them on our balance sheet
and eliminate monthly outflows from expensive rental machinery."
The financing was structured as a convertible note with 12% interest and warrants. The Note converts at a price per share that is 42% above the market price of the BMIX common stock on the date of issuance of the Note. The warrants convert at 79% above the market price of the BMIX common stock on the date of issuance of the Warrant.
Marc Fogassa further commented, "Both trustees of the family trust that invested in this transaction are highly experienced investors. I negotiated with one of them directly over the holidays and I am pleased that this financing came together quickly. Separately from the trust, these individuals manage an asset management firm with over $12 billion in assets under management."
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTCQB: BMIX), a U.S. corporation, is a diversified mining company with revenues generated from the sales of rough and polished diamonds as well as gold. BMIX also has various ownership interests in gold, titanium, vanadium, and iron projects in Brazil. More information on BMIX, including an investor presentation, can be found at www.brazil-minerals.com.
Safe Harbor Statement
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.
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