BRAZIL MINERALS, INC. EXTINGUISHES LARGE DEBT AND IMPROVES CAPITAL STRUCTURE
PASADENA, CA -- August 23, 2016 -- InvestorsHub NewsWire -- Brazil Minerals, Inc. (OTC: BMIX) (the "Company" or "BMIX") announced today that it had further improved its capital structure with the elimination of a large amount of convertible debt and preferred stock from its balance sheet.
Four holders of convertible notes payable by BMIX, with a total face value of $200,000 in principal, converted all such notes and their accrued interest into an aggregate of 80 million BMIX common shares (at a conversion rate of $0.0025 per share) as well as common shares and options of Jupiter Gold Corporation ("Jupiter Gold"), BMIX's gold-focused subsidiary. These notes would have matured on January 1, 2018. This debt was BMIX's single largest cash liability, as the notes had an optional, but not mandatory, conversion right to equity. The Company's financial statements for the third quarter of 2016, expected for release in November 2016, will account for the extinguishment of these notes and their accrued interest on its balance sheet. BMIX considers the removal of this large liability to be a significant positive for its current shareholders.
Separately, twelve holders of BMIX's Series B Preferred Stock ("Preferred B") entered into materially similar transactions with the Company (together, the "Conversions"). In the Conversions, these holders exchanged a significant portion of their Preferred B holdings for securities of Jupiter Gold. The Conversions improved BMIX's balance sheet as they eliminated a large amount of Preferred B, which, if converted into BMIX's common stock, would have diluted current shareholders. Giving effect to the Conversions and similar other transactions since late July 2016, a total of 456.30 outstanding shares of Preferred B (out of 1,047 such shares) as well as the entirety of the 200,000 outstanding shares of the BMIX's Series C Preferred Stock ("Preferred C"), have been extinguished. The Company's financial statements for the third quarter of 2016, expected for release in November 2016, will account for the elimination of such Preferred B and Preferred C on its balance sheet. BMIX considers the removal of these preferred shares to be a significant positive for its current shareholders.
In other news, BMIX concluded its initial test of alluvial material for processing in gold retrieval units. Based on the positive results obtained and the type of gold present in its areas, the Company had a mechanical sieving system designed by its mining engineer and other consultants to support operational-scale processing of material. A third-party metalworking facility is now building a first unit for use in BMIX's areas.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTC: BMIX) is a producer of diamonds, gold, sand, and industrialized mortar. We have 38 mineral rights for gold, diamonds, manganese, and sand, including 10 mining concessions for gold and diamonds, the highest level of right to mine in Brazil. More information on BMIX is at www.brazil-minerals.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals, Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Contact:
Marc Fogassa
(213) 590-2500
info@brazil-minerals.com
www.brazil-minerals.com
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