NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE,
PUBLICATION, DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES
TSX Venture Exchange - DIB
Bolsa de Valores de Lima - DIB
TORONTO, June 7, 2012 /CNW/ - Dia Bras Exploration Inc. (TSX-V:DIB) (BVL:DIB) ("Dia Bras" or the "Company") is pleased to announce that it has closed
its previously announced C$45 million private placement of common
shares at an offering price of C$3.00 per share (the "Offering").
The Company plans to use the proceeds of the Offering mainly to
accelerate exploration and mine development at Cusi, its silver mine in
Mexico; double production at Bolivar, its copper and silver mine in
Mexico, by accelerating mine development and increasing the Piedras
Verdes mill capacity from 1,000 to 2,000 tonnes per day; and explore
high-priority regional targets such as La Verde and San Patricio in
Mexico and Ipillo in Peru.
Daniel Tellechea, President and Chief Executive Officer of Dia Bras,
commented, "We are very pleased to have completed this equity financing
despite challenging market conditions while maintaining the support of
key shareholders. This financing not only reduces the Company's risk
profile as it moves our balance sheet to a net debt position of C$14
million with a strong cash balance of C$90 million, but also allows us
to speed up the implementation of a more aggressive development and
exploration programme at our Cusi silver mine in Mexico, the expansion
of our mill at Bolivar in Mexico and operating improvements and
regional exploration in Peru and Mexico. We consider that financial
strength and flexibility are paramount in these market conditions and
consider that having them combined with our high-quality assets with
expansion opportunities is the right strategy for Dia Bras."
Dia Bras most important capex programmes for the following 12 - 18
months are described below:
Yauricocha mine (silver, copper in Peru): This mine has a 15,000 metre exploration drilling programme in 2012
which is confirming orebody extensions at depth and discovering new
orebodies. Dia Bras has plans to deepen the mine with the construction
of a new 1,000 metre shaft. Dia Bras is also evaluating improvements
in its gold-silver recoveries at its ore processing mill which should
improve profit margins and production levels.
Bolivar mine (copper, zinc, silver in Mexico): The mine is increasing production from 1,000 tonnes per day to 2,000
tonnes per day in 2013. The recent discoveries extending the El Gallo
deposit have increased the potential size of the Bolivar mine orebodies
which continues to be a drilling target for 2012.
Cusi project (Silver in Mexico): This project has been in pilot mining for several years and the
recent discovery of a silver disseminated area with attractive silver
grades by industry standards, as well as several high grade veins (San
Bartolo, El Gallo, El Gallo Back, etc) have prompted the basis for
accelerated exploration and development plans.
Regional exploration in Peru: Besides the exploration of the three main orebodies currently in
production the Company has identified: i) Purisima (gold-silver); ii)
Adrico (gold); iii) Victoria (silver-copper); iv) San Juan
(polymetallic); v) Ipillo (silver-zinc); vi) Éxito Sur (polymetallic);
vii) Yauricocha fault extension (polymetallic); and, viii) Carmencita
(silver-lead) most of these areas have been previously mined by
Centromin and Cerro Pasco Corporation and also have been in production
in the past.
Regional exploration in Mexico: Dia Bras has several precious metal targets in Mexico, such as the La
Sidra gold project at the Bolivar property, the Las Coloradas silver
project at Melchor Ocampo (Zacatecas State), the Bacerac silver project
(Sonora State) and the La Verde gold project at the Batopilas property
(Chihuahua State). The Company is also exploring base metal projects in
Mexico, such as the Corralitos intrusion-hosted molybdenum deposit
The Offering was comprised of a brokered portion of 2,585,316 common
shares and a non-brokered portion of 12,414,684 common shares. The
brokered offering was completed through a syndicate of agents led by
RBC Capital Markets and also included Continental Bolsa SAB SA, Scotia
Capital Inc., Credibolsa Sociedad Agente de Bolsa S.A., Canaccord
Genuity Corp. and Dundee Securities Ltd. The agents were paid a cash
commission equal to 5% of the gross proceeds derived from the brokered
The shares comprising the non-brokered portion of the Offering were
purchased by Arias Resource Capital Fund II L.P. ("ARCF II") and Arias
Resource Capital Fund II (Mexico) L.P. ("ARCF Mexico"). Arias
Resources Capital Fund L.P., (together with ARCF II and ARCF Mexico,
the "ARC Funds"), is an insider of the Company by virtue of its
ownership, prior to completion of the Offering, of approximately 48.4%
of the Company's common shares, on a partially-diluted basis.
The ARC Funds are managed by Arias Resource Capital Management LP (the
"Manager"). The respective general partner of each of the ARC Funds
retains the power to make investment and voting decisions in respect of
the Company securities beneficially owned by the ARC Funds. J. Alberto
Arias, who serves as a director on the board of directors of the
Company, is the sole director of each of the general partners of the
ARC Funds and indirectly controls the Manager. As such, Mr. Arias may
be deemed to share voting and dispositive power with respect to the
Company securities beneficially owned by the ARC Funds, but he
disclaims any beneficial ownership of any such securities, except to
the extent of his pecuniary interest therein.
The Offering is subject to receipt by the Company of the final approval
of the TSX Venture Exchange. All securities issued under or in
connection with the Offering are subject to a hold period in Canada
until October 7, 2012.
About Dia Bras
Dia Bras Exploration is a Canadian exploration & mining company focused
on precious and base metals in Chihuahua State, other areas of northern
Mexico and most recently, at its Yauricocha
silver-lead-zinc-copper-gold mine in Peru. The Company is accelerating
exploration at the Yauricocha property as well as pursuing the
development and exploration of its most advanced Mexican assets - the
Bolivar property (copper-zinc-silver) and the Cusi property
(silver-lead) - and is exploring several precious metal targets in
Mexico, such as the La Sidra gold project at the Bolivar property, the
Las Coloradas silver project at Melchor Ocampo (Zacatecas State), the
Bacerac silver project (Sonora State) and the La Verde gold project at
the Batopilas property (Chihuahua State). Dia Bras is also exploring
base metal projects in Mexico, such as the Corralitos intrusion-hosted
molybdenum deposit (Chihuahua State).
The Company's shares trade on the Bolsa de Valores de Lima and TSXV
under the symbol "DIB".
This press release does not constitute an offer to sell or solicitation
of an offer to buy the securities in the United States or any other
jurisdiction. The Common Shares will not be and have not been
registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Except for statements of historical fact contained herein, the
information in this press release may constitute "forward-looking
information" within the meaning of Canadian securities law. Other than
statements of historical fact, all statements are "forward-looking
statements", including the use of proceeds of the Offering, which
involve various known and unknown risk and uncertainties and other
factors, including market conditions that may affect the Company's
ability to execute its current business plan. Actual results might
differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual results
could differ from those reflected in the forward-looking statements
unless and until required by securities laws applicable to the Company.
Additional information identifying risks and uncertainties is contained
in filings by the Company with the Canadian securities regulators,
which filings are available at www.sedar.com.
SOURCE Dia Bras Exploration Inc.
For further information:
on Dia Bras visit www.diabras.com or contact:
President & CEO
Dia Bras Exploration Inc.
1 (866) 493‐9646
Director, Investor Relations
Dia Bras Exploration Inc.
1 (866) 493‐9646