Brazilian Resources Reports 2004 Year-End Results; Net Income US$1.8 Million.CONCORD, N.H. -- Brazilian Resources, Inc. ("BRAZILIAN" or "the Company") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:BZI.H) reports net income of US$1,765,418, or US$0.02 per common share outstanding, for the year ended December 31, 2004, as compared to net income of $1,368,152, or US$0.03 per common share in 2003. BRAZILIAN's annual audited consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and management's discussion and analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial have been filed on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review and will be available at its corporate website www.brazilianresources.com. Investment in Jaguar Mining Inc. BRAZILIAN's primary asset is its investment in its former subsidiary, Jaguar Mining Inc. ("Jaguar") (JAG judge advocate general (J.A.G.) n. a military officer who advises the government on courts-martial and administers the conduct of courts-martial. The officers who are judge advocates and counsel assigned to the accused come from the office of the judge advocate - TSX) with a book value of US$6.1 million at December 31, 2004. BRAZILIAN held 26.4% of Jaguar's common shares at the beginning of 2004. During the year, Jaguar issued additional shares through equity financings, and BRAZILIAN sold or transferred Jaguar shares to settle certain accounts payable, resulting in a reduction of the Company's ownership in Jaguar to 15.9% at December 31, 2004. The market value of BRAZILIAN's holdings of Jaguar was US$14.6 million at the end of 2004 and US$13.4 million at the current date. BRAZILIAN's net income during 2004 is derived primarily from a US$0.2 million gain on the disposal of Jaguar common shares and a US$3.3 million dilution gain on the Jaguar holdings after Jaguar issued shares at a price higher than the Company's average cost basis. This was offset by US$1.3 million of BRAZILIAN's percentage share of Jaguar's interim losses under the equity method of accounting. Jaguar produced 15,100 ounces of gold in Brazil during 2004, its first year of operations, and has announced a goal of approximately 50,000 ounces of production during 2005. BRAZILIAN intends to retain significant holdings in Jaguar for the foreseeable future; however, it may occasionally sell Jaguar shares to repay debt, to obtain working capital or to obtain seed capital for its development projects. The Company may also use its Jaguar shares as collateral for loans. Other projects: Base metals, food irradiation Food irradiation is the process of exposing food to ionizing radiation in order to destroy microorganisms, bacteria, viruses, or insects that might be present in the food. Further applications include sprout inhibition, delay of ripening, increase of juice yield, and improvement of During February 2004, BRAZILIAN became the holder of rights to subscribe to 49% of the quota shares of an existing corporation in Brazil, Prometalica Mineracao Ltda. ("Prometalica"). Other shareholders include IMS (1) See IP Multimedia Subsystem. (2) (Information Management System) An early IBM hierarchical DBMS for IBM mainframes. IMS was widely implemented throughout the 1970s under MVS and continues to be used under z/OS. Empreendimentos Ltda. (50%), a Brazilian mine engineering firm and current operator of Jaguar's gold properties. Prometalica intends to develop basic and precious mineral resources through a project known as Monte Cristo. BRAZILIAN has until February 2006 to pay for the subscribed capital in the amount of US$3.5 million, and is responsible for providing a guarantee of US$3.85 million to the institution providing financing for the Monte Cristo project. In a related party transaction, Jaguar has advanced US$3.4 million to Prometalica, allowing Prometalica to purchase processing equipment and properties it had under contract. In return, Jaguar has the right to purchase certain equipment from Prometalica at cost. The advance is due to be repaid by July 30, 2005. BRAZILIAN is currently revising and/or renewing prior agreements related to its planned development of food irradiation facilities in Brazil. Its business plan calls for development of five cobalt food irradiation plants in Brazil's major food producing areas. Each facility is estimated to cost US$3 to $5 million to permit and develop. BRAZILIAN formerly controlled a 70% interest in a mineral property which included an inactive open pit/heap leach gold mine located in the state of Amapa in the Brazilian portion of the Guyana Shield. The property is subject to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. by Brazilian authorities with respect to environmental issues, all of which were outlined by the Company's environmental plan at the time of acquisition. In March 2005, the Company's Brazilian subsidiary signed a formal rescission The abrogation of a contract, effective from its inception, thereby restoring the parties to the positions they would have occupied if no contract had ever been formed. By Agreement of the mine leasing contract, which recognizes that the subsidiary was not directly responsible for the environmental liability, and a complete and general release has been provided. The Company is currently pursuing a release from the Brazilian authorities. Annual meeting BRAZILIAN has scheduled its annual and special meeting of shareholders for June 29, 2005 at 11:00 am (Eastern time) at the offices of Hinckley Allen & Snyder, LLP LLP - Lower Layer Protocol , 43 North Main Street, Concord, New Hampshire
Concord is the capital of the state of New Hampshire in the United States. It is also the county seat of Merrimack County. As of the 2000 census, its population was 40,687. . Record date is May 24, 2005. BRAZILIAN is a resource and infrastructure development company trading on the NEX NEX abbr. Navy exchange board of the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. . BRAZILIAN has 80,579,488 common shares outstanding (89,597,281 fully diluted), holds 4,820,709 common shares of Jaguar Mining Inc., a gold producing company listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties, which could cause actual results to vary considerably from these statements. Readers are cautioned not to put undue reliance on forward-looking statements. BRAZILIAN's and Jaguar'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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Brazilian Resources, Inc. (TSX VENTURE:BZI.H) |
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