Brazilian Resources Discusses 1998 Business Plan, Anglo's Major Discovery near Santa Maria And Hydroelectric Business.CONCORD, N.H.--(BUSINESS WIRE)--March 20, 1998--Brazilian Resources (CANADIAN DEALING NETWORK Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. :BZIN.) Brazilian Resources, Inc. ("BRAZILIAN") is an emerging gold producer which has operated in Brazil for six years and has acquired highly prospective properties in each of three major greenstone belts in the country. BRAZILIAN's highest priority is further development of its 70 percent-owned, 20,862 acre Santa Maria Santa Maria, city, Brazil Santa Maria (sän`tə mərē`ə), city (1991 pop. 217,592), Rio Grande do Sul state, S Brazil. It is a major railroad terminus and the site of an important military base. property, which includes a permitted open pit/heap leach gold mine located in the State of Amapa, within the Brazilian portion of the Guyana Shield. A division of Anglo American Corporation S.A. Ltd. ("Anglo") controls the exploration property abutting Santa Maria to the north. In January, BRAZILIAN purchased options to acquire 100 percent of the mineral rights to the 366,605 acre Vila Nova There are parishes and municipalities that have the name Vila Nova (Portuguese for new town) in Portugal and Cape Verde: In the Azores
The main geological feature in this area is a 50 km long mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. shear zone, of which BRAZILIAN owns or controls 30 km along strike. In mid-February, the Brazilian press reported that Anglo had discovered a "supermine" on a property formerly controlled by Icomi, a Brazilian natural resource company. By early March, a North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. trade journal reported that Anglo had discovered "24 million tons of oxide ore grading 2.8 g/t gold (approximately 2.37 million oz) in its Vila Nova group of properties." Officials from the Brazilian federal mining agency confirm that there has been a massive discovery on the property abutting BRAZILIAN's Vila Nova option to the north, but will not discuss further details at this time. BRAZILIAN has previously announced its intent to resume gold production at Santa Maria in April of this year at an initial rate of 12,000 oz per year, while completing design and development of a second heap, expanding operations to an annual rate of 35,000 to 40,000 oz. News of the Anglo discovery has spawned considerable interest in the Vila Nova area from senior producers, and management is currently reviewing several alternatives to its initial plans. The decision will hinge upon Verb 1. hinge upon - be contingent on; "The outcomes rides on the results of the election"; "Your grade will depends on your homework" depend on, depend upon, devolve on, hinge on, turn on, ride confirmation of details of the Anglo discovery. BRAZILIAN estimates the Santa Maria mine's current gold resources to be 365,000 oz, of which 150,000 oz (1.95 million tonnes grading 2.44 g Au/t) are classified as minable reserves. BRAZILIAN is seeking joint venture partners to develop its 100 percent-owned Sabara property in Minas Gerais Minas Gerais (mē`nəs zhərīs`) [Port.,=various mines], state (1996 pop. 16,660,691), 226,707 sq mi (587,171 sq km), E Brazil. The capital is Belo Horizonte. Minas Gerais continues to produce more than half of Brazil's mineral wealth. , and Cedro Bom properties in the State of Mato Grosso. Even though the Sabara property has estimated gold resources of 926,900 oz, management believes it is unlikely to independently finance further exploration or development of projects that are not at or near production stage in the traditional capital markets without significant dilution to existing shareholders. In order to more fully realize value in the corporate asset base, BRAZILIAN is seeking to participate in the next major privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned of Brazil's resource infrastructure, the hydroelectric industry. Management believes it has a unique opportunity to generate sustainable cash flow from hydroelectricity as a result of its personnel, strategic relationships and country experience. The Brazilian electrical system has been characterized as a public monopoly in generation, transmission and distribution since the 1950's. Growth of the Brazilian electric sector has been based on the construction of huge projects; projects under 100 megawatt ("mW") have been ignored. BRAZILIAN intends to become an independent producer of hydroelectricity from 10-30 mW plants. BRAZILIAN has already executed an agreement with a Brazilian entity which has first priority to develop several state-owned hydroelectric concessions. One of these concessions is already producing, and the others are at feasibility or pre-feasibility stage. BRAZILIAN has developed a strategic relationship with Duke Engineering and Services ("DE&S"), an independently operated business unit of Duke Power Company ("Duke") which is based in Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. . Duke has a long history in the development, construction and operation of hydroelectric plants in the United States and internationally. DE&S manages 26 domestic and 12 international offices and has performed work in 50 countries. Over the last several months, DE&S has provided project assessment and due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. reports on several of BRAZILIAN's target sites. DE&S and BRAZILIAN are currently negotiating an Engineer, Procure, Construct (EPC (1) (Entertainment PC) See HTPC. (2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). ) agreement as well as an operational contract. BRAZILIAN is seeking a US$75 million debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay to be used primarily to acquire and develop hydroelectric assets, with approximately US$10 million dedicated to development of the Santa Maria mine and surrounding properties. It is anticipated that approximately 70 percent of the debt load would be in the form of a revenue sharing revenue sharing Funding arrangement in which one government unit grants a portion of its tax income to another government unit. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states. bond, directly tied to the performance of the projects. The remaining debt is scheduled to be a conventional bond issue guaranteed by a third party insurance company and collaterized by gold assets. Management views this capital plan as a method to leverage its undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. gold properties. BRAZILIAN has engaged The Eaton Group, a North Andover, Massachusetts-based investment banking firm specializing in project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. , to lead its hydroelectric fund raising activities. Structured Risks Limited, a London-based underwriter, has contracted to structure an insurance guarantee that should facilitate access to funds. On September 19, 1996, BRAZILIAN completed the private placement of 2,870,000 Series B Special Warrants ("Special Warrants") at a price of $0.50 per Special Warrant for aggregate gross proceeds of Cdn. $1,435,000. Each Special Warrant entitled the holder to acquire one common share and a half-share purchase warrant, and were exercisable without additional payment on March 19, 1998. Each whole purchase warrant will entitle the holder to purchase one additional common share at a price of Cdn. $0.55 until the earlier of September 19, 1999 or the first anniversary after a final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. receipt is issued by the Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. . BRAZILIAN is quoted on the Canadian Dealing Network under the symbol "BZIN". After exercise of the Special Warrants described above there will be 40,014,232 common shares outstanding, of which officers and directors control approximately 22 percent. BRAZILIAN's securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or resold in the United States or to a U.S. person absent registration or an applicable exemption from the registration requirements. EDITOR'S NOTE: There is an "at" symbol following "info" in the e-mail addresses below. This symbol may not appear properly in some systems. CONTACT: Brazilian Resources, Inc. Daniel Titcomb, 603/224-4800 603/228-8045 (FAX) E-mail: info@brazilianresources.com Website: www.brazilianresources.com or Brazilian Resources, Inc. Jeffrey Kirchhoff, 603/224-4800 603/228-8045 (FAX) E-mail: info@brazilianresources.com Website: www.brazilianresources.com |
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