Shares to Commence Trading on the TSX Venture Exchange on May 16, 2011
Under the Symbol BRI
VANCOUVER, May 12 /CNW/ - 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.
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
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
SOURCE Brazil Resources Inc.
For further information:
Telephone: (604) 227 1124