http://www.businesswire.com/news/home/20091103006860/en
HOUSTON--(Business Wire)--
BRAZAURO RESOURCES CORPORATION ("Brazauro" or the "Company") (TSX VENTURE:BZO)
is pleased to announce that it has completed its recently announced private
placement to raise gross proceeds of $4,978,804.35. The Company issued 7,659,699
units at price of $0.65 per unit (each a "Unit"), of which 5,939,746 Units were
sold pursuant to a brokered portion of the private placement and 1,719,953 Units
were sold pursuant to a non-brokered portion of the private placement. Each Unit
is comprised of one common share and one-half of a common share purchase warrant
and each whole warrant entitles the holder thereof to purchase an additional
common share of the Company at a price of $1.00 per share until May 3, 2011.
M Partners Inc. and Industrial Alliance Securities Inc. (the "Agents") acted as
agents for the brokered portion of the private placement and were paid a cash
commission of $308,866.79, being 8% of the gross proceeds of the brokered
portion of the private placement. The Company also issued to the Agents 475,180
agent`s warrants, equal to 8% of the number of Units sold under the brokered
portion of the private placement. Each agent`s warrant entitles the holder to
purchase one unit, having the same terms as a Unit, at $0.65 per unit until May
3, 2011.
All of the securities issued and issuable pursuant to the private placement are
subject to a hold period in Canada expiring March 4, 2010.
Brazauro is pleased to advise that Eldorado Gold Corporation ("Eldorado")
acquired 1,032,000 Units under the private placement, maintaining its ownership
interest in the Company.
Proceeds of the private placement will be used to fund ongoing exploration
programs at Brazauro`s gold exploration properties in the Tapajos region of
Brazil and for general corporate purposes.
About Brazauro Resources
Brazauro is a publicly listed company (TSXV:BZO) with gold properties in the
Tapajós district of Pará State in Brazil. The Company made a major gold
discovery in 2004 at its 100%-controlled Tocantinzinho property (the "TZ
property"). Drilling since that time has expanded the discovery significantly.
Out of 97 diamond drill holes, 85 defined gold mineralization. In March 2009 the
Company released an update to the 43-101 compliant resource estimate of 16.546
million tonnes of Measured Resources at an average grade of 1.317 grams per
tonne Au, 29.031 million tonnes of Indicated Resources at an average grade of
1.196 grams per tonne Au, and 9.416 million tonnes of Inferred Resources at an
average grade of 1.066 grams per tonne Au.
Eldorado has the option to acquire a 60% interest in the Tocantinzinho Project
for $40 million by committing to an expenditure of $9.5 million over a two-year
period toward completing an NI 43-101-compliant feasibility study. Eldorado will
have a second option to purchase an additional 10% of the Tocantinzinho Project
for a further $30 million once a construction decision has been made following
the completion of a feasibility study. Eldorado will have a third option to
purchase an additional 5% of the Tocantinzinho Project for a further $20
million. If the feasibility study outlines between 2 and 2.5 million proven and
probable ounces of gold, the price will be increased by $5 million and if it
outlines more than 2.5 million proven and probable ounces of gold, the price
will be increased by $10 million. Eldorado has advised Brazauro that it has to
date expended in excess of $10.2 million on exploration thereby meeting its
minimum expenditure commitment.
Brazauro continues to explore for other promising properties in the greater
Tapajós Region including the 20,430 hectare Piranhas property located just 20
kilometers southwest of the TZ property. Unofficial historic production from
this property has been reported as more than 800,000 ounces of gold.
Brazauro has also signed a non-binding letter of intent to acquire the Agua
Branca project in the Tapajos region from Talon Metals Corporation as announced
September 10, 2009
Mark E. Jones III
Chairman, CEO Brazauro Resources Corporation
This news release does not constitute an offer to sell or solicitation of an
offer to sell any securities in the United States.The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX VentureExchange) accepts responsibility
for the adequacy or accuracy of this release.
Some statements in this news release contain forward-looking information. These
statements include, but are not limited to, statements with respect to future
expenditures and activities. These statements address future events and
conditions and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements to
be materially different from any future results, performance or achievements
expressed or implied by the statements. Such factors include, among others, the
ability to complete certain activities and the timing and amount of
expenditures. Brazauro does not assume the obligation to update any
forward-looking statement.
Brazauro Resources Corporation
Mark E. Jones III, Chairman, 281-579-3400
info@brazauroresources.com
www.brazauroresources.com
Copyright Business Wire 2009
