Shares of BRAZIL RESOURCES I COM NPV (OTCMKTS:BRIZF) skyrocketed more than 20 points following news that mineral exploration company acquired the Titiribi Gold-Copper Project from NovaCopper.
Brazil Resources Inc. (“Brazil Resources” or the “Company”) (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce that it has completed the acquisition of Sunward Investments Limited, which owns 100% of the Titiribi Gold-Copper Project (the “Titiribi Project”), from NovaCopper Inc. (“NovaCopper”) pursuant to the terms of the share purchase agreement (the “Agreement”) between the parties previously announced by the Company on August 18, 2016.
Amir Adnani , Chairman of Brazil Resources, commented: “We are very pleased to complete the acquisition of the Titiribi Project, which we anticipate will deliver significant value accretion to our shareholders. The Company continues to execute on its stated mandate to uncover opportunities and acquire quality gold assets.”
Garnet Dawson, CEO of Brazil Resources, further added: “Brazil Resources’ geological team is very excited about the potential of the Titiribi Project, which has been the subject of a significant amount of historical drilling and exploration work. Our team is now working towards identifying areas for follow-up exploration and we have also commissioned an independent National Instrument 43-101 technical report and resource estimate on the Titiribi Project that will be completed in the near future. We look forward to providing further updates as we progress the project.”
Pursuant to the Agreement, Brazil Resources acquired all of the shares of Sunward Investments Limited, which indirectly owns 100% of the Titiribi Project. The total consideration payable by Brazil Resources to NovaCopper consisted of 5,000,000 common shares of Brazil Resources (the “BRI Shares”) and 1,000,000 share purchase warrants, with each warrant exercisable into a BRI Share at an exercise price of $3.50 per share for a period of two years, subject to acceleration by Brazil Resources in certain circumstances.
The BRI Shares to be issued under the transaction are subject to certain resale restrictions pursuant to the terms of the Agreement.
Haywood Securities Inc. (“Haywood”) advised the parties in connection with the transaction. In connection therewith, the Company has paid Haywood an advisory fee of $135,441, which was satisfied by the Company by issuing 61,288 BRI Shares concurrently with the closing of the transaction.
The Titiribi Project
The Titiribi Project is located in Central Columbia, approximately 70 kilometres southwest of the city of Medellin in the department of Antioquia and is comprised of one concession that covers an area of approximately 39.19 square kilometres. The project is located between 1,200 to 2,200 metre elevations, below the elevation of the Páramo tropical mountain ecosystems, and is road accessible by paved highway from Medellin, with high power electrical lines passing within three kilometres.
The project occurs within the Mid-Cauca Porphyry Belt and consists of several near surface bulk tonnage gold-copper porphyry and associated epithermal gold systems. A total of 270 diamond drill holes, totaling 144,779 metres, have been drilled at the Titiribi Project, with nine mineralized areas identified to date.
The Mid-Cauca Porphyry Belt hosts several gold projects in development or production in the last decade, including AngloGold’s Ashanti’s Quebradona, B2Gold’s Gramalote, Continental Gold’s Buritica, Red Eagle’s San Ramon, and Gran Colombia’s Marmato projects. This has largely coincided with the government encouraging foreign development in a region that has not seen, until recently, the implementation of modern exploration programs.
Paulo Pereira, President of Brazil Resources has reviewed and approved the technical information contained in this news release. Mr. Pereira holds a Bachelors degree in Geology from Universidade do Amazonas in Brazil, is a Qualified Person as defined in National Instrument 43-101 and is a member of the Association of Professional Geoscientists of Ontario.
About Brazil Resources Inc.
Brazil Resources Inc. is a public mineral exploration company focused on the acquisition and development of gold projects in Brazil and other regions of the Americas. Brazil Resources is advancing its Cachoeira and São Jorge Gold Projects located in the State of Pará, northeastern Brazil, its Whistler Gold-Copper Project located in the state of Alaska, United States of America, and its Rea Uranium Project in the western Athabasca Basin in northeast Alberta, Canada.
Potential investors in BRAZIL RESOURCES I COM NPV (OTCMKTS:BRIZF) should be looking at the current and historical short data, in order to get a glimpse of where the market believes the stock might be headed. According to the most recent information, there are 438200 total short interest. Given the stock’s average daily volume of 516806, this results in 0.4 days to cover. In looking at the total shares short in respect to the total outstanding share total of 102600000, yields a 0.00427% of total shares are are short. Compared to last month, this is a -2.32 change in total short interest.
When investors engage in short selling or “shorting a stock”, they actually borrow shares from an existing owner, sell the borrowed shares at market price, and take the cash. The short sellers then promise to replace the stock in the future and makes dividend payments out of their own pockets to cover the dividend income that is no longer exists on the original, now borrowed and sold, shares.
They hope that the stock price will fall or that the company will fail and go bankrupt, leading the equity holders to ruin. The short sellers will then buy the stock back at a much lower price and replace the borrowed shares, pocketing the difference.
Shorting a stock can be very risky if the price doesn’t decline like planned and, in fact, increases. It’s important for any investor to understand the dangers and potentially catastrophic financial losses of short selling.
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Brazil Minerals Inc shares closed the most recent session at 1.95 moving from the previous open or $0.23. This is compared to the stock’s 52-week high of 2.44 and 52-week low of 0.26. Is now the right time to take stake in the 177030000 market cap company?
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Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.