Brazil Resources Inc. (TSX.V: BRI / OTCQX:BRIZF) (the "Company" or "Brazil Resources") is pleased to announce that, further to its press releases dated November 14, 2016, it has completed the third and final tranche (the "Final Tranche") of its previously announced private placement (the "Private Placement") for additional gross proceeds of $1,636,625, issuing 654,650 units (the "Units") at a price of $2.50 per Unit. The Company received total gross proceeds of $12,393,145 and issued an aggregate of 4,957,258 Units under all tranches of the Private Placement.
Amir Adnani, Chairman of the Company, stated: "We are very pleased with the strong level of support shown by existing and new individual and institutional investors in this oversubscribed Private Placement. With more than $21.0 million of cash on hand, we have a strong balance sheet and are positioned well to further execute our growth and acquisition strategy."
Each Unit consists of one common share of the Company and one half of a common share purchase warrant, with each full warrant entitling the holder thereof to acquire one common share of the Company at an exercise price of $3.50 up to three years after the issuance thereof.
In connection with the Private Placement, the Company has agreed to pay finder's fees of $77,805, being equal to 6% of the gross proceeds in connection with 518,700 Units issued thereunder, to arm's length parties in accordance with the policies, and subject to approval, of the TSX Venture Exchange (the "TSXV"). The Company intends to use proceeds from the Private Placement to bolster its ongoing acquisition strategy and for general working capital needs.
The securities issued under the Private Placement will be subject to a four month hold period from the date of issuance, in the case of the Final Tranche, expiring March 16, 2017, in addition to any other restrictions under applicable law.
The Units, common shares and warrants, including common shares issuable upon valid exercise of the warrants, 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 UNITS, COMMON SHARES OR WARRANTS, IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.
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.
Source: Brazil Resources
