Brazil Resources Inc. (OTCMKTS:BRIZF) reported that it has closed all outstanding payments due to Luna Gold Corp. under the previously reported share purchase deal among the parties dated July 10, 2012, pursuant to which company bought a 100% stake in the Cachoeira Gold Project (“Cachoeira”).
As previously stated, the Final Payments were pending and comprised of over 3.093 million common shares of the firm and a payment of $300,000 in cash. This comprised over 1.879 shares issued at an estimated rate of $2.927 per share to satisfy payments due of $5.5 million under the Share Purchase Deal, which were payable at the will of the firm in shares or cash. All of the shares released are subject to limitations as more completely set forth in the Share Purchase Deal.
Garnet Dawson, the CEO of Brazil Resources, said that these final payments support company’ business plan in Brazil and also shows commitment to comprehensive portfolio of gold assignments in Para State. More than $4.4 million has been put in at the Sao Jorge and Cachoeira and assignments on engineering and environmental studies.
They have submitted application for an environmental license at Cachoeira and requested for a mining discount at Sao Jorge and intend on continuing to support these assignments. Additionally, the company is currently evaluating opportunities to develop joint ventures at Surubim and Boa Vista assignments, both of which sports NI 43-101 gold resource projections. In addition to resource-stage assignments, Brazil Resources has 3 additional prospective gold assignments in Para State accessible for future exploration and JV prospects.
The Cachoeira project, based in the Gurupi Greenstone Belt, has obtained over $25 million in exploration. It has defined 3 gold deposits with a total specified gold resource of 692,000 ounces and 538,000 ounces gold in the inferred segment at a 0.35 g/t gold decline. Several geochemical and geophysical targets based to the east of the specified deposits will be drill evaluated in future drill plans.
Brazil Resources has given an environmental study and planned public consultations with local shareholders in connection with its submission for a Preliminary Environmental License.