Brazil Resources (BRI-V) Increases Size of PP to $3.7 Million, Announces Closing of Initial Tranche of $3.4 Million
Feb 29, '16 - NR
Brazil Resources is pleased to announce that, further to its news releases dated February 11 and 16, 2016, it has further increased the size of its previously announced private placement from aggregate gross proceeds of $2 million to $3.7 million, or 8,222,222 common shares at a subscription price of $0.45 per share (the "Private Placement").
The Company is also pleased to announce that it has completed the initial tranche of the Private Placement and has issued 7,540,050 common shares at a price of $0.45 per share for aggregate gross proceeds of approximately $3.4 million (the "Initial Tranche").
Amir Adnani, Chairman, stated: "We are very pleased with the strong interest from our existing and new shareholders, including the Company's insiders. This financing positions us well to further execute on our business strategy of expanding our gold resources at a significant discount to their replacement value."
In connection with the Initial 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 $40,500 in accordance with the policies of the TSX Venture Exchange (the "TSXV"). The common shares issued under the Private Placement, will be subject to a hold period expiring four months plus one day from closing 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 its existing property portfolio and the acquisition of additional projects, and for general working capital 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. Closing of the balance of the Private Placement is subject to receipt of all necessary approvals, including the approval of the TSXV.
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.
SOURCE Brazil Resources Inc.
Brazil Resources Inc.,
Amir Adnani, Chairman,
Garnet Dawson, CEO,
Patrick Obara, Chief Financial Officer,
Telephone: (855) 630-1001 |
