Brazil Minerals, Inc. Has Acquired Over 73% of the Largest Diamond Recovery Plant in Latin America
BELO HORIZONTE, BRAZIL--(Marketwired - Jun 3, 2014) - Brazil Minerals Inc. (
Through its stake in Duas Barras, BMIX posted revenues of $791,780 in 2013. Of this revenue, 69% was derived from rough diamond sales and 31% from gold sales. In 2014, the revenue mix already includes sales of polished diamonds, which command much higher margins than rough ones.
Duas Barras is a Brazilian company which owns two mineral rights encompassing over 1,404 acres, including a fully-operational mining concession that produces diamonds and gold. These rights are located in the valley of the Jequitinhonha River, a well-known mining region. Duas Barras has the largest alluvial processing plant for diamonds and gold in Latin America, and operates with all necessary environmental and operational licenses, as well as excellent labor and community relations. Additionally, the Duas Barras mining concession has benefited from an NI 43-101 study, a copy of which is accessible from our website, www.brazil-minerals.com.
Marc Fogassa, Chairman and CEO of BMIX, commented, "We are continuing to execute on our plan to transform Duas Barras into a high margin diamond operation. There are several steps to achieving this, and we are methodically advancing the plan. Our increased ownership, as announced today, is pivotal in this process."
All of the Duas Barras diamonds qualify for Kimberley Certification, which is essential for access to the global markets. The Kimberley Process Certification Scheme was established by the United Nations to prevent "conflict diamonds" from entering the market; Brazil is a signatory to this agreement.
For the additional ownership in Duas Barras, BMIX paid $500,000 and issued 675,000 shares of its restricted common stock. The cash component of this acquisition was financed by sales of polished diamonds for forward delivery, as previously announced. Other details of this transaction were presented in the Form 8-K filed with the Securities and Exchange Commission on June 3, 2014. BMIX had acquired its original stake in Duas Barras in 2013; since then, Duas Barras has undergone major improvements in several respects.
Former U.S. Ambassador Roger Noriega, a director of BMIX, commented, "It is a pleasure to see the progress we are making. The aggressive, creative, and detail-oriented management of Marc and his team is producing impressive results."
About Brazil Minerals, Inc.
Brazil Minerals Inc. (OTCQB: BMIX), a U.S. corporation, is a diversified mining company with revenues from sales of rough and polished diamonds as well as gold, and ownership of interests in projects in gold, titanium, vanadium and iron in Brazil. More information on BMIX, including an investor presentation, can be found at www.brazil-minerals.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Cautionary note regarding estimates of Indicated and Inferred Mineral Resources as found in the Duas Barras NI 43-101. We advise U.S. investors that while these terms are recognized by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves.