BRAZIL MINERALS, INC. UPDATES ON GOLD,
DIAMONDS, MANGANESE AND DISCUSSES STRATEGY
PASADENA, CA -- July 13, 2016 -- InvestorsHub NewsWire
-- Brazil Minerals, Inc. (OTC:
BMIX) (the "Company" or "BMIX") today gave brief updates on its
gold retrieval platform and first royalty contract for diamonds and
gold, disclosed the receipt of two mineral rights for manganese,
and announced an ongoing strategy to strengthen its capital
structure over time.
BMIX has continued to progress well with its gold retrieval
platform, as described in previous releases. Each centrifugal
separator, with its associated water-pump and portable generator,
is a Gold Retrieval Unit (GRU). The Company has received its second
GRU and will be installing it. Additionally, the diamond and gold
group that has signed BMIX's first royalty contract for diamonds
and gold already has moved equipment, personnel and part of its
diamond processing mini-plant to one of the Company's mining
areas.
This week BMIX formally received title from the local mining
department to two manganese claims, both placed in a new wholly
owned subsidiary. These mineral rights cover 4,700 acres and are
located 75 and 110 miles, respectively, from the Company's gold and
diamond operations, in the state of Minas Gerais in Brazil. Both of
these claims intersect known colluvial laterite deposits with
high potential for mineralization of manganese and possibly iron
ore as well.
In recent conversations with potential investors, the Company
observed that certain groups want to be more heavily involved with
diamonds, others prefer gold, and yet others are only interested in
commodity-type minerals. Additionally, BMIX noted that its
multi-faceted expertise in Brazil, a country bigger than the
continental U.S. territory and with vast mineral resources, was
seen as a strong competitive edge. Based on such observations and
other data, the Company believes it to be in the best interest of
its shareholders to create certain mineral-specific
subsidiaries.
Such strategy will accommodate specific investor demand, and
allow each subsidiary to raise its own capital, instead of diluting
BMIX. The initial focus will be on new high potential mineral areas
or projects that the Company either obtains or options. The
outcome, for example, would be that a group interested only in gold
could invest directly in the Company's gold subsidiary with mineral
rights and projects for gold. Alongside this strategy, it is the
current intent of BMIX to maintain for itself its core
properties.
The Company will maintain an ongoing ownership stake in each
subsidiary it creates; such percentage will depend both on the
valuation given to the subsidiary at any point in time and the
amount of capital it raises from outside sources. Additionally,
BMIX intends to receive contractual cash flows from each subsidiary
for oversight and administration. Furthermore, to expand its
royalty platform, the Company intends that each subsidiary provide
ongoing royalty payments to BMIX on revenue-generation from
projects. Most subsidiaries will remain private, but others may
become publicly traded, thus enabling the stock market the
opportunity to value more accurately such mineral-specific
enterprises. It is unlikely that any subsidiary would take on
variable-rate convertible debt, since the focus will be on equity
raises from groups holding interest in a given mineral.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTC:
BMIX) is a producer of diamonds, gold, sand, and industrialized
mortar. We have title to 32 mineral rights for gold, diamonds,
manganese, and sand, including 10 mining concessions for gold and
diamonds, the highest level of right to mine in Brazil. More
information on BMIX is at www.brazil-minerals.com.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward looking statements are based
upon the current plans, estimates and projections of Brazil
Minerals, Inc.'s management and are subject to risks and
uncertainties, which could cause actual results to differ from the
forward looking statements. Such statements include, among others,
those concerning market and industry segment growth and demand and
acceptance of new and existing products; any projections of
production, reserves, sales, earnings, revenue, margins or other
financial items; any statements of the plans, strategies and
objectives of management for future operations; any statements
regarding future economic conditions or performance; uncertainties
related to conducting business in Brazil, as well as all
assumptions, expectations, predictions, intentions or beliefs about
future events. Therefore, you should not place undue reliance on
these forward-looking statements. The following factors, among
others, could cause actual results to differ from those set forth
in the forward-looking statements: business conditions in Brazil,
general economic conditions, geopolitical events and regulatory
changes, availability of capital, BMIX's ability to maintain its
competitive position and dependence on key management. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy any security and shall not constitute an offer,
solicitation or sale of any securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction.
Cautionary note regarding estimates of Indicated and
Inferred Mineral Resources of Diamonds and Gold as found in MDBs NI
43-101 Technical Reports.
We advise U.S. investors that while these terms and amounts
are recognized by Canadian regulations, the U.S. Securities and
Exchange Commission (SEC) does not recognize them. U.S. investors
are cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into mineral
reserves as defined by the U.S.s Industry Guide 7.
Cautionary note regarding estimates of Mineral
Reserves of Diamonds and Gold as found in MDBs Bankable Feasibility
Study.
We advise U.S. investors that while these terms and amounts
are recognized by Brazilian regulations, the SEC does not recognize
them. U.S. investors are cautioned not to assume that any part or
all of the mineral deposits in this category will ever be converted
into mineral reserves as defined by the U.S.s Industry Guide
7.
Cautionary note regarding estimates of Volume and
Weight of Sand as found in MDBs studies filed with the local
Brazilian regulatory agencies.
We advise U.S. investors that while sand volume and weight
terms and amounts as filed in Brazil are recognized by Brazilian
regulations, the SEC does not recognize them. U.S. investors are
cautioned not to assume that any part of such are not considered
mineral reserves as defined by the U.S.s Industry Guide 7.
Cautionary note regarding estimates of potential
mineralization for gold of the Apui/Borba Project with the local
Brazilian regulatory agencies.
We advise U.S. investors that potential mineralization for
gold of the Apui/Borba Project with Brazilian regulators is not
recognized by the SEC. U.S. investors are cautioned not to assume
that any part of such potential mineralization is or will ever
become mineral reserves as defined by the U.S.s Industry Guide
7.
Contact:
Marc Fogassa
(213) 590-2500
info@brazil-minerals.com
www.brazil-minerals.com