VANCOUVER, Jan. 4, 2012 /PRNewswire/ - Brazil Resources Inc. (the "Company" or "BRI") (TSXV: BRI) today issued a year-end shareholder report. Please find the report from chairman Amir Adnani below.
On behalf of the board of directors and the team at Brazil Resources Inc., I am pleased to provide you with a report on the Company's corporate, acquisition and exploration activities during 2011.
I would like to thank you for your continued support as a BRI shareholder. Your trust in the Company and its management is greatly appreciated.
During 2011, we acquired several projects and increased our overall land holdings in Brazil from under 5,000 to over 300,000 acres. We further strengthened an already world-class management team, and worked towards identifying drill-ready targets and prospective acquisitions to focus on in the New Year.
As the Company continued to advance, within this challenging economic environment where many gold explorers having seen their valuations decline by 30% or more, shares of the Company have more than doubled since its IPO in May 2011, and have never traded below $1.
With more than $10 million in cash, no debt and approximately 39 million shares outstanding, BRI is in a strong position to accelerate its growth strategy and to pursue the acquisition of advanced-stage properties with known resources.
Company Highlights from 2011:
Strong Treasury: The Company recently completed a $4.7 million private placement. Given the difficult market conditions, the completion of this financing demonstrates a strong vote of confidence for management and the Company's prospective projects. Currently, the Company has over $10 million in the treasury and approximately 39 million shares outstanding.
Expanding Throughout Brazil: A series of acquisitions totaling four projects and over 300,000 acres signaled the start of the Company's expansion throughout Brazil in 2011.
Permitting Advancements at Montes Áureos: The Company has recently received all necessary permits for its previously announced drilling program on the Montes Áureos Project, which is expected to commence imminently. The Company previously identified a 2-km by 300-meter gold anomaly that is nearby to and on-strike with other known gold deposits.
Bolstering a World-Class Team: The Company expanded its technical and management teams in 2011 with the appointments of:
Paulo Pereira, VP Exploration: Over 25 years of experience in exploration and mining activities in Brazil and Canada working for major mining companies.
Enzio Garayp, Director: Formerly served as the exploration manager for Kinross in Brazil and oversaw the 8 Moz expansion of Brazil's 18 Moz Paracatu Mine.
Herb Dhaliwal, Advisor: Formerly Canada's Minister of Natural Resources and served in the cabinet under Prime Minister Chrétien.
Ovidio Antonio de Angelis, Advisor: Former Minister of Regional Politics in Brazil and served in the Brazilian cabinet under President Fernando Cardoso; recently served as Secretary of the Foreign Trade Bureau of Goias State.
Catalysts for 2012 and Beyond
With a promising start to the Company's expansion already underway, more than $10 million in cash and three advanced exploration programs already scheduled for 2012, we are focused on further ramping-up acquisitions and exploration activities.
Continued Expansion Throughout Brazil: In consultation with our strategic partner and shareholder the Brasilinvest Group, a leading merchant bank, and our seasoned Brazil-based technical team, we have aggressively identified assessed and continue to review expansion opportunities throughout Brazil.
Drilling at Montes Áureos: A drill program on the Montes Áureos Project is expected to commence shortly, and we anticipate releasing results in first half of 2012.
Ongoing Exploration at Trinta and Maua: The Company continues to conduct its previously disclosed exploration programs with the objective of identifying drill-ready targets. The Trinta and Maua projects are located in close proximity to Jaguar Mining's Gurupi Open-Pit Gold Project.
Exploration Activities at Artulandia: The Company recently signed an option agreement to acquire a 100%-interest in the Artulandia property in prolific Goias state. Artulandia hosts two large parallel gold trends and each are approximately 11 km in length. Company geologists believe a source to the gold trend may exist on the property and an exploration program is underway with the objective to identify drill-ready targets.
Increasing Recognition: The investment community is becoming increasingly aware of the Company, its management team and growth prospects. Since its IPO, the Company has enjoyed press coverage from various mining industry publications, including Northern Miner and Resource World magazine.
Gold's Role in Today's World
The Board and management recognize the increasingly important role that gold is serving to stabilize individuals, companies, governments and central banks throughout the world during this extended era of economic uncertainty. The Company was formed on the basis of building a world-class team focused on making and advancing gold discoveries in Brazil, and possibly in additional expanding gold belts in South America.
We look forward to capitalizing on the opportunities in the gold sector as we continue to build on the foundation we have established by achieving major acquisition and exploration milestones in 2012. Thank you again for your confidence in management. We welcome your continued participation in Brazil Resources Inc.
Brazil Resources Inc.
Note Regarding Scientific and Technical Information
Paulo Pereira, the Company's Vice President of Exploration has supervised the preparation of the technical information contained in this document. Mr. Pereira holds a Bachelor degree in Geology from Universidad Do Amazonas in Brazil, is a qualified person as defined in NI 43-101 and is a member of the Association of Professional Geoscientists of Ontario.
Forward Looking Statements
This document 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 exploration plans in respect of its projects, and its future acquisition 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; 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 has a limited operating history; that resource exploration and development is a speculative business; that the Company may lose or abandon its property interests; that the Company's property is in the exploration stage and is 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.