Brazil Resources Inc. Announces Closing of Initial Public Offering
May 12, 2011
Shares to Commence Trading on the TSX Venture Exchange on May 16, 2011 Under the Symbol BRI
Vancouver, British Columbia â€" May 12, 2011 â€" Brazil Resources Inc. ("Brazil Resources" or the "Company") (TSX-V:BRI) is pleased to announce that it has completed its initial public offering of 3,800,000 common shares (the "BRI Shares") at a price of $0.65 per BRI Share for gross proceeds of $2,470,000 (the "Offering"). The TSX Venture Exchange (the "TSX-V") has approved the listing of the BRI Shares and has advised the Company that the BRI Shares will commence trading on the TSX-V on May 16, 2011 under the symbol "BRI".
Canaccord Genuity Corp. (the "Agent") acted as the Company's agent in connection with the Offering. Pursuant to the Offering, the Agent and members of its selling group received a cash commission of $144,950, 76,923 BRI Shares in satisfaction of a corporate finance fee and 311,200 warrants, each exercisable into one BRI Share at a price of $0.65 for a period of 12 months. 8,123 of the BRI Shares issued to the Agent are subject to a hold period expiring on September 13, 2011.
Currently, the Company has over $8,000,000 cash on hand with no debt. The Company intends to use the proceeds from the Offering to undertake the recommended work program on its Montes Áureos project in the State of Maranhão, Brazil, with the remainder of the proceeds to be used to assess future opportunities in Brazil and elsewhere in South America and for general corporate purposes and working capital requirements.
About Brazil Resources Inc.
Brazil Resources is a mineral exploration company with a focus on the acquisition and development of projects in emerging producing gold districts in Brazil and other parts of South America. Currently, the Company is advancing its Montes Áureos property located in the State of Maranhão, Brazil, within the Gurupi gold belt. Brazil Resources is also seeking to acquire and develop additional gold properties within Brazil and other parts of South America.
For additional information, please contact:
Telephone: (604) 227 1124
The securities offered 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 these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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.