VANCOUVER, March 11, 2016 /CNW/ - Brazil Resources Inc. (the
"Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is
pleased to announce that, further to its news release dated
February 29, 2016, it has completed
the second and final tranche of its previously announced private
placement (the "Private Placement") for total additional proceeds
of $1,106,977.50, consisting of
2,459,950 common shares issued at a subscription price of
$0.45 per share (the "Final
Tranche"). As a result of oversubscriptions, the total size of the
Private Placement was further increased to $4.5 million, comprising 10,000,000 common shares
of the Company. The common shares issued under the Private
Placement, will be subject to a hold period expiring four months
plus one day from closing.
As announced on February 29, 2016,
the Company previously closed the initial tranche of the Private
Placement, consisting of 7,540,050 common shares of the Company for
gross proceeds of $3,393,022.50 (the
"Initial Tranche").
In connection with the Final Tranche, the Company paid cash
commission equal to 6% on a portion of the gross proceeds raised
thereunder to certain arm's length parties in the aggregate amount
of $1,985 in accordance with the
policies of the TSX Venture Exchange (the "TSXV"). The total
finders' fees paid under the total of $4.5
million Private Placement was $42,485 to such arm's length parties. The
common shares issued under the Private Placement, will be subject
to a hold period expiring four months plus one day from closing,
being June 27, 2016, in the case of
the Initial Tranche, and July 12,
2016, in the case of the Final Tranche, in accordance with
the rules and policies of the TSXV and applicable Canadian
securities laws and such other restrictions as may apply under
foreign securities laws.
The Company intends to use the net proceeds from the Private
Placement to advance its corporate strategy, including expenses
associated with the exploration of its existing projects and the
acquisition of additional projects, and for working capital and
general corporate purposes.
The common shares 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 common shares, 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 Whistler Gold-Copper Project,
located in Alaska, United States, its Cachoeira and São Jorge
Gold Projects, located in the State of Pará, northeastern
Brazil, and its 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 Company will finalize definitive
agreements with subscribers, 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; and the
Company will be able to identify and acquire additional mineral
interests on reasonable terms or at all. 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 will not be
able to finalize definitive agreements with subscribers; 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 licences 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;
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.