Adriana Resources Inc.

Adriana Resources Inc.

August 22, 2007 14:16 ET

Adriana to Develop Port Development Site in Brazil for Iron Ore Export

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2007) - Adriana Resources Inc. ("Adriana" or the "Company") (TSX VENTURE:ADI) announces that it has entered into an option agreement to acquire three contiguous parcels of shoreline covering 857,575 square meters of land in Brazil for development of an iron ore port facility. The purchase was completed through a newly formed company, Brazore Holdings ("Brazore Holdings") with a wholly owned Brazilian subsidiary, Brazore Ltda. ("Brazore"). Adriana owns 75% of Brazore Holdings while Athena Resources L.L.C. ("Athena"), a private investment firm based in New York, USA, owns the remaining 25% interest. Brazore's business plan is to build and operate an iron ore mining and export business in Brazil through port development, shipping solutions, and the acquisition of third party mineral rights with the potential for large scale mineral resources.

"In 2006, we recognized an infrastructure opportunity in Brazil for an independent iron ore port facility to capitalize on the restricted market of the many small and medium size iron producers located in the State of Minas Gerais. Our goal was to secure a strategic land position on the coast of Brazil where we would have direct access to the extensive railway and transportation network that joins the vast mineral resources of Brazil. We have now secured the strategic land position and have established a key relationship with Seabulk Systems who will assist us in port development. This is a milestone for Adriana and a stepping stone to building a Brazilian iron ore producer and mineral transportation company," stated Michael J. Beley, President & CEO of Adriana.

The subject land offers an ideal location for the potential construction of a shallow water-transshipment facility capable of handling up to 18 million tonnes of iron ore per year. A series of shallow draught self-loading vessels known as "Lighters" can transport iron ore to a larger transshipment vessel permanently anchored offshore where iron ore can be systematically moved onto ocean going ships used in the iron ore sea-borne trade.

The company has established a world-class team for planning, managing, operating and developing the Brazilian project. The team will be comprised of senior management that will undertake equity and project financing efforts, organize project management and execute the business plan. Dr. Joe Griebel, a director of Adriana, is the CEO of Brazore and is based in Rio de Janeiro. Dr. Griebel is responsible for overseeing the implementation of Brazore's business plan. Dr. Griebel comes to Adriana after spending the past six years as President of Inco Brasil Limitada where he remained until the recent takeover by Companhia Vale do Rio Doce (CRVD). Dr. Griebel holds a M.Sc. in Geology as well as a Ph.D. in Mineralogy and has over thirty-five years of experience in International Mineral Project Management, of which 15 years has been spent in Brazil.

The Company and Seabulk Systems Inc. of Richmond, BC, Canada have agreed to a strategic relationship (news release dated January 29, 2007) in the development of large scale bulk mineral systems to provide port development and shipping solutions. Seabulk has been commissioned to provide a scoping study on the port site that will lead to the commencement of a bankable feasibility study.

"Surging demand for metals, specifically iron ore, in rapidly developing countries such as China and India has created some of the best infrastructure opportunities in recent years. We look forward to building a long-term relationship with Brazore," stated Sid Sridhar, President and CEO of Seabulk Systems Inc.

Adriana is to fund Brazore's business plan in three tranches to maintain its 75% ownership: (1) US $5 million by October 20, 2007, of which Adriana has funded US $500,000 to date, (2) US $18 million by November 29, 2007 and (3) a further US $33 million by August 20, 2009. The Company intends to fund these tranches through private placements of equity and/or debt. The funds will be used for the purchase of the port site, advanced engineering and feasibility studies, procurement and port development.

The transaction is subject to a finder's fee agreement with Alper Consulting Inc. ("Alper") whereby Adriana is to pay to Alper a fee between 1% and 5% of development expenditures of the project to a maximum $350,000. The fee is payable in cash or common shares, at the election of Adriana. If payable in shares, the conversion price will be the average of the five trading days prior to payment.

The transactions stated above are subject to regulatory approval.

About Adriana Resources Inc.

Adriana Resources Inc. is a mineral exploration and development company with advanced and early staged mineral projects in Canada, Finland and Brazil. The individuals comprising Adriana.s Board have a proven record in identifying and successfully developing mineral deposits through to production. Adriana is focused on bringing our advanced mineral project in Finland to production and developing a world class iron ore port facility in Brazil.


Michael J. Beley, President

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental risks and permitting, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this release.

Contact Information

  • Adriana Resources Inc.
    Robert Ferguson
    (604) 629-0250 or Toll Free: 1-877-629-0150
    (604) 629-0923 (FAX)