May 14 2013
Brazil Minerals, Inc. ("Brazil Minerals" or "BMIX"), a precious minerals producer with resources and assets in Brazil, announced that it has added gold revenues to its diamond operations and acquired a majority ownership stake in Mineração Duas Barras Ltda. ("Duas Barras"), a Brazilian diamond and gold producing mining company.
On April 30, 2013, BMIX and Brazil Mining, Inc. ("Brazil Mining"), a privately-held Delaware corporation and the current largest shareholder of BMIX, consummated an agreement for majority control of Duas Barras. Brazil Mining sold to the 99.99%-owned Brazilian subsidiary of BMIX the rights to all profits, losses, and appreciation or depreciation, and all other economic and voting interests of any kind in a 55% equity interest that Brazil Mining has in Duas Barras, in exchange for 1,000,000 shares of BMIX's common stock. From April 30, 2013, BMIX began recording 55% of the sales and profits of the mine's operations, which will be included in the BMIX's quarterly report for the period ended June 30, 2013.
Marc Fogassa, Chairman and Chief Executive Officer of BMIX, stated with respect to this news, "Duas Barras is the first revenue-generating operation which we acquired for BMIX. The Duas Barras mine has the largest physical plant for processing alluvial diamonds and gold anywhere in Latin America, and its mining concession has had an NI 43-101 technical report issued, which documented both indicated and inferred resources for gold and diamonds. The Duas Barras majority equity stake is pivotal in that BMIX now captures gold revenues that it did not have before, as well as a higher participation in raw diamond sales. In addition to Duas Barras' processing its own gold and diamond resources, it can strategically serve any immediate mining concession areas and companies with whom BMIX decides to partner with in the future."
Source: http://www.brazil-minerals.com/