Brazauro to Acquire New Property in the Tapajos Mineral Province, Braziladmin
Tuesday, August 5th 2008
Brazauro Resources Corporation has entered into an option agreement to acquire 100% of the Piranhas property in the Tapajós Mineral Province, Pará state, Brazil. The agreement, signed with an individual, covers three claims that total 20,688 hectares.
The Piranhas property lies approximately 20 kilometers southwest of the Company’s Tocantinzinho project and is also located within the northwest-trending Tocantinzinho-Cuiu Cuiu gold belt, which hosts the most important gold deposits and garimpos in the province, including Tocantinzinho, Cuiu Cuiu, Palito, São Jorge, São Domingos, Água Branca and Bom Jardim. Piranhas is a well-known and traditional garimpo in the Tapajós, having been in production for the last forty years. Unofficial artisanal gold output from this property has been reported as more than 26,000 kilos (836,000 ounces).
Mark Jones, chairman and CEO, said, “We are very pleased to acquire an area that is so clearly highly prospective. We will use the expertise and experience gained at Tocantinzinho to thoroughly explore this new property. With the addition of this property, Brazauro is now one of the three largest mineral interest holders in the corridor controlling more than 120,000 hectares.”
To maintain the agreement in good standing Brazauro has the option to make installment payments over a three-year period as follows (R$1 = US$0.638):
* R$ 18,000 on execution (paid) * R$ 22,000 after issue of the exploration licenses and filing of a transfer agreement with the Brazilian mineral authorities * Payments every six months thereafter, for the next five six-month intervals, totaling R$315,000, or approximately US$200,000
* And, if Brazauro still chooses to exercise the option, a final payment of R$ 1,445,000, or approximately US$920,000, thirty-six months after issue of the exploration license and filing of the transfer agreement.