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Pasadena-Based Gold and Diamond Producer Brazil Minerals Improves Capital Structure

Published on Wednesday, August 24, 2016 | 11:42 am
 

Pasadena-based diamonds, gold, sand, and industrialized mortar producer Brazil Minerals, Inc. (BMIX) has announced it had further improved its capital structure by eliminating a large amount of convertible debt and preferred stock from its balance sheet.

BMIX, whose headquarters are at 155 N. Lake Ave Suite 800 in Pasadena, has 38 mineral rights for gold, diamonds, manganese, and sand in Brazil, including 10 mining concessions for gold and diamonds, the highest level of right to mine in that country.

As a significant improvement, BMIX removed a large liability after four holders of convertible notes with a total face value of $200,000 converted the notes and their accrued interest into an aggregate of 80 million BMIX common shares as well as common shares and options of Jupiter Gold Corporation, BMIX’s gold-focused subsidiary. These notes would have matured on January 1, 2018.

The debt was BMIX’s single largest cash liability, as the notes had an optional conversion right to equity. The Company’s financial statements for the third quarter, expected for release in November, will account for the extinguishment of these notes and their accrued interest.

Separately, 12 holders of BMIX’s Series B Preferred Stock entered into materially similar transactions with the company. In the conversions, these holders exchanged a significant portion of their Preferred B holdings for securities of Jupiter Gold. The   conversions eliminated a large amount of Preferred B. Since late July, a total of 456.30 outstanding shares of Preferred B as well as the entirety of the 200,000 outstanding shares of the BMIX’s Series C Preferred Stock have been extinguished.

Third quarter financial statements will also account for the elimination of the preferred shares.

In another company development, BMIX has concluded its initial test of alluvial material for processing in gold retrieval units and obtained positive results. Knowing the type of gold present in its areas, BMIX’s mining engineer and other consultants had designed a mechanical sieving system to support operational-scale processing of material. A third-party metalworking facility is now building a first unit.

For more information about the company, visit www.brazil-minerals.com.

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