SEATTLE, June 2 /PRNewswire-FirstCall/ -- Brazil Gold Corp. (OTC Bulletin Board: BRZG) ("Brazil Gold" or the "Company") is pleased to announce that it has closed on the acquisition of Amazonia Capital e Partipacoes Ltda. ("Amazonia") of Brazil. The transaction gives Brazil Gold ownership rights to 99% of Amazonia, the owner of the exclusive rights to explore an extensive 2.1 million acre land package of mineral rights in the Amazon Basin region of Brazil.
Phillip Jennings, VP and Director of Brazil Gold stated, "The process was lengthy but well worth it. The Company knew it was acquiring an extraordinary asset in one of the hottest mineral plays on the planet. In addition, the acquisition brings into Brazil Gold a world-class, experienced exploration team, with almost a decade of successful exploration operations in the Amazon."
Brazil Gold acquired its ownership in an agreement with Rusheen Handels AG, a Swiss corporation, which owned 99% of all of the issued and outstanding share capital of Amazonia, a Brazilian corporation. Rusheen receives 44 million shares of the Company's common stock. Prior to the closing of this agreement to acquire Amazonia, the Company cancelled 44 million of its restricted shares, which were returned to treasury.
With the transaction, Brazil Gold will be the owner of approximately 2,125,000 acres of mineral claims located in three states in the prolific Tapajos Greenstone Belt in the Amazon Basin. This area encompasses a total of 102 mining claims in the three western states of Amazonas, Mato Grosso, and Rodonia. The primary mineral target is gold, however copper, nickel, iron ore, manganese and cassiterite (tin) are also found in the area. Most of Brazil Gold's properties are near existing roads and rivers which have access to international ports, as well as to small mining and farming communities, thereby giving the Company access to fuel, energy and manpower - conditions which are suitable for low-cost bulk tonnage mining.Amazonia's prospecting and exploration team selected the tenured areas for exploration because of the numerous producing or previously producing gold mines on the lands which have been operated by local indigenous hand miners, known as garimpeiros. "The Brazil Gold team is excited to complete this acquisition. After months of due diligence and auditing procedures, we can now concentrate the Company's energy on the exploration initiatives, already underway in some locations, and take advantage of a very propitious time for gold exploration activity," added Mr. Jennings.