BRAZIL MINERALS, INC.
EXTINGUISHES LARGE DEBT AND IMPROVES CAPITAL STRUCTURE
PASADENA, CA -- August 23, 2016 -- InvestorsHub NewsWire --
Brazil Minerals, Inc. (OTC:
BMIX) (the "Company" or "BMIX") announced today that it had
further improved its capital structure with the elimination of a
large amount of convertible debt and preferred stock from its
balance sheet.
Four holders of convertible notes payable by BMIX, with a total
face value of $200,000 in principal, converted all such notes and
their accrued interest into an aggregate of 80 million BMIX common
shares (at a conversion rate of $0.0025 per share) as well as
common shares and options of Jupiter Gold Corporation ("Jupiter
Gold"), BMIX's gold-focused subsidiary. These notes would have
matured on January 1, 2018. This debt was BMIX's single largest
cash liability, as the notes had an optional, but not mandatory,
conversion right to equity. The Company's financial statements for
the third quarter of 2016, expected for release in November 2016,
will account for the extinguishment of these notes and their
accrued interest on its balance sheet. BMIX considers the removal
of this large liability to be a significant positive for its
current shareholders.
Separately, twelve holders of BMIX's Series B Preferred Stock
("Preferred B") entered into materially similar transactions with
the Company (together, the "Conversions"). In the Conversions,
these holders exchanged a significant portion of their Preferred B
holdings for securities of Jupiter Gold. The Conversions improved
BMIX's balance sheet as they eliminated a large amount of Preferred
B, which, if converted into BMIX's common stock, would have diluted
current shareholders. Giving effect to the Conversions and similar
other transactions since late July 2016, a total of 456.30
outstanding shares of Preferred B (out of 1,047 such shares) as
well as the entirety of the 200,000 outstanding shares of the
BMIX's Series C Preferred Stock ("Preferred C"), have been
extinguished. The Company's financial statements for the third
quarter of 2016, expected for release in November 2016, will
account for the elimination of such Preferred B and Preferred C on
its balance sheet. BMIX considers the removal of these preferred
shares to be a significant positive for its current
shareholders.
In other news, BMIX concluded its initial test of alluvial
material for processing in gold retrieval units. Based on the
positive results obtained and the type of gold present in its
areas, the Company had a mechanical sieving system designed by its
mining engineer and other consultants to support operational-scale
processing of material. A third-party metalworking facility is now
building a first unit for use in BMIX's areas.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTC:
BMIX) is a producer of diamonds, gold, sand, and industrialized
mortar. We have 38 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.
Contact:
Marc Fogassa
(213) 590-2500
info@brazil-minerals.com
www.brazil-minerals.com