PASADENA, CA--(Marketwired - Jun 15, 2015) - Brazil Minerals, Inc. (OTCBB: BMIX) (the "Company" or "BMIX") announced today that it has cut its Brazilian fixed costs by 50% as a result of the relocation of its Brazilian administration to an office 15 miles away from its diamond, gold, and sand mine operations.
To facilitate oversight and communications, the Company eliminated its Belo Horizonte office, which had been established before BMIX's mine acquisition and was located over 300 miles away from it. Because of savings in both labor and office costs and the elimination of travel and lodging expenses, the result of the relocation is a decrease in Brazilian fixed costs by 50%. The further benefit is that there will be easier communication between administrative and operational staff.
BMIX's CEO now directly interfaces with the directors responsible for the two business components of the Company: diamonds and gold; and sand and industrialized sand products. Other activities, such as mineral rights analysis, environmental compliance, and human resources, which are not revenue-generating, have been allocated to expert consultants who are used only as needed. Such consultants report directly to BMIX's CEO.
Later this year, the Company is planning to add a second person to its California office and for this purpose is interviewing candidates that are fluent in Portuguese (the language of Brazil) and possess advanced degrees. Such selected person will work with the CEO on a number of areas, including investor relations. BMIX has a growing number of long-term oriented investors, and several larger ones are based in California.
At this time, BMIX is specifically and primarily focused on two items: i) elimination of its variable-rate floorless convertible debt, and ii) becoming cash flow positive. The news announced today brings cash flow positivity closer.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTCBB: BMIX) is a U.S. publicly-traded company with revenues from sales of rough and polished diamonds, gold, and sand. Our goal is to become a diversified and profitable company, and an attractive and liquid alternative for investment in Brazil, one of the largest global economies. Our team combines Brazilian business expertise and American experience in finance, private equity and venture capital.
BMIX owns 100% of MDB, a Brazilian producer and seller of polished and rough diamonds, gold bars and industrial-use sand. MDB operates a fully-operational mining concession with the largest alluvial processing plant for diamonds and gold in Latin America and has the Brazilian permit to export its production.
BMIX also owns 50% of RST Recursos Minerais, Ltda. ("RST"), a Brazilian company with 10 mining concessions and 12 other mineral rights for diamond and gold. A number of the RST areas are located near MDB's plant, in the Jequitinhonha River valley, a well-known area for diamonds and gold for over two centuries.
More information on BMIX 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, 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.
Cautionary note regarding estimates of Indicated and Inferred Mineral Resources of Diamonds and Gold as found in MDB's NI 43-101 Technical Reports.
We advise U.S. investors that while these terms and amounts are recognized by Canadian regulations, the U.S. Securities and Exchange Commission ("SEC") does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.
Cautionary note regarding estimates of Mineral Reserves of Diamonds and Gold as found in MDB's Bankable Feasibility Study.
We advise U.S. investors that while these terms and amounts are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.
Cautionary note regarding estimates of Volume and Weight of Sand as found in MDB's studies filed with the local Brazilian regulatory agencies.
We advise U.S. investors that while sand volume and weight terms and amounts as filed in Brazil are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part of such are not considered mineral reserves as defined by the U.S.'s Industry Guide 7.