Categories: Precious Metals
Topics: General Precious Metals

Brazil Resources Chairman Amir Adnani Explains the Value of the Titiribi Acquisition from NovaCopper

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is Amir Adnani. Amir is an entrepreneur, a mining executive, and the chairman and founder of Brazil Resources (TSX-V: BRI)(OTC: BRIZF). Brazil Resources is focused on the acquisition and development of gold projects in the Americas. The company also has a uranium joint venture with the French nuclear giant Areva in the western Athabasca Basin. Now the company has over 10 million gold ounces across all categories, and yesterday Brazil Resources announced it's entry into Colombia by acquiring a 100% interest in the Titiribi gold project. Amir, thank you for joining me today. That gold project, Amir, is actually a gold-copper project, is that correct?

Amir Adnani: Hi, Gerardo. Good to be with you. Yeah, this is a project, and really an acquisition I should say, that at this point we're quite excited about. Yesterday we announced the signing of the definitive agreement with NovaCopper, which is the company we're buying it from. There's a great story here, too, because how this project became part of NovaCopper had to do with a broader corporate transaction NovaCopper did with a company called Sunward Resources in mid 2015. To some extent perhaps people almost forgot about this gold project, but in our opinion, it's quite a significant project.

It's really a win win transaction with NovaCopper because NovaCopper is focused on advancing its copper project in Alaska. This becomes really a good way for them to realize greater value for their gold property in the hands of a company that is gold focused, being our company, Brazil Resources. For us, this can even be a stronger market recognition for really an excellent project. You saw that NovaCopper also did an all stock deal here that we announced yesterday, taking equity in BRI and that's what we liked about the aspects of this deal.

Gerardo Del Real: Absolutely. Now, the market reacted very favorably yesterday. What is it about the project that made it attractive to you?

Amir Adnani: We continue to look for projects. And this what I think the market is expecting from us to A, find accretive acquisitions and B, acquisitions that are of projects that have been drilled already, have prior work done in terms drilling and engineering work, metallurgy, etc. And to be able to buy these projects for basically significantly less than replacement value of the work that was done. I really feel we checked all the boxes with this acquisition, Gerardo, in terms of how we were able to demonstrate that we're in a very solid mining jurisdiction next to some very good neighbors in terms of the other companies that are in this district and in this belt. The Cauca mining belt and district is really one of the more important gold and silver producing areas in Colombia.

When you think about the fact that for just under 5% dilution, we were able to pick up over 100,000 meters of drilling and in a very historic and significant area. I think it shows that BRI can execute and it can find those accretive acquisitions, and I think that's what the market response yesterday was. It's still early days in terms that we have a number of steps here to complete to get more information out about the project, about the acquisition. We still have the closing. But this might go down as being one of our more important acquisitions to date.

Gerardo Del Real: Absolutely. Now, you mentioned the drilling, and you mentioned the fact that it's early stage, but what we do know is that there's approximately 144,000 meters of diamond drilling in over 270 holes, and it holds several styles of mineralization in 9 different zones. I mentioned earlier that Brazil Resources currently has over 10 million gold ounces across all categories. What are the next steps that we should be expecting in regards to the potential acquisition and the project?

Amir Adnani: Yeah, so at this point again what we've announced already is that we've entered into a definitive agreement, a purchase agreement for the acquisition of the project, so we've signed a deal. We have a closing coming up of the acquisition on or about September 1st, so that'll be the next step. There we'll look to hopefully release maybe and say a bit more about some of the history and the background on the project. Then really get into the very extensive drilling database and the other work that was completed on the project. We will commission National Instrument 43-101 reports and technical reports to be completed. Then that will be the next step in terms of being able to demonstrate and show what the projects potential and resource will hold.

Gerardo Del Real: Excellent. You also mentioned, Amir, central Colombia being in a very important mining jurisdiction, that this of Colombia is very important for the country's mining projects. Now there are several nearby projects. I mean, those include Red Eagle's San Ramon project, B2Gold's Gramalote project, Continental Gold's Buriticá, and of course grand Colombia's Marmato project. Is Colombia a country that you're looking to for further expansion?

Amir Adnani: It's a jurisdiction we like a lot. It really was about finding a meaningful entry into the country. I believe this acquisition gives us a meaningful entry into the country. Our mandate will continue to be to look for accretive acquisition opportunities. I think we may have a new stomping ground in Colombia, but at the same time as you know we're active in Brazil. We have a good base with our Whistler projects in Alaska. We didn't make this acquisition to be a one hit wonder in Colombia, so I think we'll definitely keep looking here. Don't forget we've got really a strong partner in Brazil and that who is the oldest investment banking and merchant bank in all of South America.

We've got excellent relationships in Colombia as well and some other partners there have been and will be great resources for us to also continue development and looking for opportunities, but one of BRI's board members is also actually based in Colombia, so we feel that there are certain advantages that we've always had to be able to be an active player in this country. It really took finding the right opportunity, the right project to get in, and we finally have that. We're quite excited about that.

Gerardo Del Real: Well you certainly have the right partners, Amir. You've been able to be very opportunistic in what was a very tough market. It looks like there is a little bit of light at the end of tunnel and it appears that we're in a much, much better gold market. Is there anything else that you'd like to add?

Amir Adnani: No, I think we've covered it, Gerardo. Like we said, there should be more news flow on this acquisition in the coming weeks and months and we'll look forward to come back and update your audience on that as more news comes out.

Gerardo Del Real: Amir, well as always we look forward to you coming back on. Thank you so much for joining me today, thank you for your time.

Amir Adnani: Thank you, Gerardo.