VANCOUVER, Oct. 28, 2016 - Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce that it intends to carry out a non-brokered private placement (the "Private Placement") of up to 1,600,000 units (the "Units") at $2.50 per Unit for aggregate gross proceeds of up to $4 million. Each Unit will consist of one common share of the Company and one half of a common share purchase warrant, each such warrant entitling the holder thereof to acquire one common share of the Company at an exercise price of $3.50 up to 3 years after the closing of the Private Placement.
Amir Adnani, Chairman of the Company, stated: "Combined with our current strong cash position of approximately $9.5 million, this Private Placement will position us well to continue to advance our strategy of identifying and executing targeted accretive acquisitions. Additionally, this funding will increase our flexibility in terms of the size and structure of potential transactions going forward."
Closing of the Private Placement is subject to receipt of all necessary approvals, including approval of the TSX Venture Exchange and receipt of definitive subscriptions. The securities issued under the Private Placement will be subject to a four month hold period from the date of closing of the Private Placement in addition to any other restrictions under applicable law.
The Company intends to use proceeds from the Private Placement to, among other things, further its ongoing acquisition strategy and for general working capital needs.
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.
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 Titiribi Gold Copper Project, located in Colombia, Whistler Gold-Copper Project, located in Alaska, United States, Cachoeira and São Jorge Gold Projects, located in the State of Pará, northeastern Brazil and Rea Uranium Project, located in the western Athabasca Basin in northeast Alberta, Canada.
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Source: Brazil Resources
