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VANCOUVER, Nov. 15, 2016 /CNW/ - Brazil Resources Inc. (the
"Company" or "Brazil Resources") (TSX-V: BRI; OTCQX:
BRIZF) is pleased to announce that, further to its press releases
dated November 14, 2016, it has
completed the third and final tranche (the "Final Tranche")
of its previously announced private placement (the "Private
Placement") for additional gross proceeds of $1,636,625, issuing 654,650 units (the
"Units") at a price of $2.50
per Unit. The Company received total gross proceeds of $12,393,145 and issued an aggregate of 4,957,258
Units under all tranches of the Private Placement.
Amir Adnani, Chairman of the
Company, stated: "We are very pleased with the strong level of
support shown by existing and new individual and institutional
investors in this oversubscribed Private Placement. With more than
$21.0 million of cash on hand, we
have a strong balance sheet and are positioned well to further
execute our growth and acquisition strategy."
Each Unit consists of one common share of the Company and one
half of a common share purchase warrant, with each full warrant
entitling the holder thereof to acquire one common share of the
Company at an exercise price of $3.50
up to three years after the issuance thereof.
In connection with the Private Placement, the Company has agreed
to pay finder's fees of $77,805,
being equal to 6% of the gross proceeds in connection with 518,700
Units issued thereunder, to arm's length parties in accordance with
the policies, and subject to approval, of the TSX Venture Exchange
(the "TSXV"). The Company intends to use proceeds from the
Private Placement to bolster its ongoing acquisition strategy and
for general working capital needs.
The securities issued under the Private Placement will be
subject to a four month hold period from the date of issuance, in
the case of the Final Tranche, expiring March 16, 2017, in addition to any other
restrictions under applicable law.
The Units, common shares and warrants, including common shares
issuable upon valid exercise of the warrants, have not been, and
will not be, registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act"), or any U.S.
state securities laws and may not be offered or sold in
the United States, absent
registration or an available exemption from the registration
requirement of the U.S. Securities Act and applicable U.S. state
securities laws.
THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR
THE SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF
THE UNITS, COMMON SHARES OR WARRANTS, IN ANY JURISDICTION IN WHICH
SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.
About Brazil Resources Inc.
Brazil Resources Inc. is a public mineral exploration company
with a focus on the acquisition, exploration and development of
projects in Brazil, United States, Canada and other regions of the Americas.
Brazil Resources is advancing its Titiribi Gold Copper
Project, located in Colombia,
Whistler Gold-Copper Project, located in Alaska, United
States, Cachoeira and São Jorge Gold Projects, located in
the State of Pará, northeastern Brazil and Rea Uranium Project, located in the
western Athabasca Basin in
northeast Alberta, Canada.
Forward Looking Statements
This news release contains certain forward-looking statements
that reflect the current views and/or expectations of the Company
with respect to its performance, business and future events,
including statements regarding the Company's long-term growth
strategy. Forward-looking statements are based on the
then-current expectations, beliefs, assumptions, estimates and
forecasts about the business and the industry and markets in which
the Company operates, including that: the current price of and
demand for minerals being targeted by the Company will be sustained
or will improve; the Company's current exploration programs and
objectives can be achieved; the Company will be able to obtain
required exploration licences and other permits; general business
and economic conditions will not change in a material adverse
manner; financing will be available if and when needed on
reasonable terms; the Company will not experience any material
accident; the Company will be able to identify and acquire
additional mineral interests on reasonable terms or at all; and the
Company will be able to carry out its acquisition strategy.
Forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions which
are difficult to predict. Investors are cautioned that all
forward-looking statements involve risks and uncertainties,
including: that the Company has a limited operating history; that
resource exploration and development is a speculative business;
that the Company may lose or abandon its property interests or may
fail to receive necessary licenses and permits; that the Company's
properties are in the exploration stage and are without known
bodies of commercial ore; that the Company may not be able to
obtain all necessary permits and approvals on any of its
properties; that environmental laws and regulations may become more
onerous; that the Company may not be able to raise additional funds
when necessary; potential defects in title to the Company's
properties; fluctuations in currency exchange rates; fluctuating
prices of commodities; operating hazards and risks; competition;
potential inability to find suitable acquisition opportunities
and/or complete the same; that the Company will not be able to
carry out its acquisition strategy; and other risks and
uncertainties listed in the Company's public filings. These
risks, as well as others, could cause actual results and events to
vary significantly. Accordingly, readers should not place
undue reliance on forward-looking statements and information, which
are qualified in their entirety by this cautionary statement.
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. The
Company 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 nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Brazil Resources Inc.
