Polished Gems Provide New Revenue Stream
BELO HORIZONTE, BRAZIL–(Marketwired – Dec 11, 2013) – Brazil Minerals, Inc. (OTCQB: BMIX) (the “Company” or “BMIX”), is a diversified mining company and a producer of diamonds and gold at its Mineração Duas Barras Ltda. (“Duas Barras”) subsidiary located in the state of Minas Gerais in Brazil. BMIX also owns all of the mining rights to a gold project covering 24,700 acres in the state of Amazonas, as well as interests in projects in titanium, vanadium, and iron in Brazil. The Company announced today that according to the Rapaport Diamond Price List (“Rapaport”) the valuation of its first lot of cut and polished diamonds was $5,400 per carat. To date, BMIX has sold rough diamonds, at an average of $140 per carat. The Company now intends to start selling part of its production as polished diamonds and will utilize the Rapaport valuation as its guideline for pricing.
Marc Fogassa, chairman and CEO of BMIX, commented: “This is very positive news; I am exceptionally satisfied. Until now, BMIX has had revenues both from the sale of rough diamonds and gold produced in Duas Barras. The Company is now taking some of our rough mined diamonds, having them cut and polished in Brazil at a highly skilled center for about $50 dollars per gem, and exporting them to the United States for grading and certification at the Gemological Institute of America (“GIA”). The result is a dramatic increase in valuation on a per-carat basis.”
The diamonds contained in this graded lot were mined in Duas Barras, the diamond and gold producing property that BMIX controls in Brazil. Duas Barras operates under and abides by environmental regulations and licensing requirements from state and federal authorities in Brazil. Furthermore, BMIX has obtained the necessary Brazilian federal license to export either rough or polished diamonds.
This initial lot of cut and polished diamonds was exported to the United States and upon arrival submitted for grading and certification at the GIA. Established in 1931, the GIA is a non-profit and the world’s foremost authority on diamonds. The diamonds from Duas Barras, all naturally occurring and not subject to any post-extraction treatment, were 100 percent accepted for grading and certification. Upon grading by the GIA, the highest color obtained in this lot was “F”, one of the top grades, and in the category known as “colorless.” The highest clarity was “VVS1,” one of the top grades for clarity.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTCQB: BMIX), a U.S. corporation, is a diversified mining company and a producer of diamonds and gold at its Mineração Duas Barras Ltda. (“Duas Barras”) subsidiary located in the state of Minas Gerais in Brazil. BMIX also owns all of the mining rights to a gold project covering 24,700 acres in the state of Amazonas, as well as interests in projects in titanium, vanadium, and iron in Brazil. More information on BMIX, including an investor presentation, can be found 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, the 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.