Brazil Gold Corp.
OTC Bulletin Board : BRZG

Brazil Gold Corp.

May 20, 2010 09:39 ET

Brazil Gold Signs Definitive Agreement for Amazonia Mineral Package

SEATTLE, WASHINGTON--(Marketwire - May 20, 2010) - Brazil Gold Corp. (OTCBB:BRZG) ("Brazil Gold" or the "Company") is pleased to announce that it has signed the definitive agreement to acquire the ownership rights to 99% of Amazonia Capital e Partipacoes Ltda. ("Amazonia") of Brazil. Amazonia is the current owner of the exclusive right to explore an extensive 2.1 million acre land package of mineral rights in the Amazon basin region of Brazil.

Brazil Gold has entered into an Acquisition Agreement (the "Agreement") with Rusheen Handels AG, a Swiss corporation ("Rusheen"), whereby the Company will acquire all of Rushenn's ownership units in Amazonia, a Brazilian corporation, which represents 99% of all of the issued and outstanding share capital of Amazonia. This Agreement supersedes the letter of intent previously announced by the Company. The formal transfer of ownership is expected to complete before the end of May, 2010. The Company will acquire from Rusheen all of Rusheen's ownership units in Amazonia in exchange for 44 million shares of the Company's common stock. As a condition to closing the transaction with Rusheen, the Company will cancel 44 million restricted shares in its common stock and return them to treasury.

Amazonia is the registered owner of approximately 2,125,000 acres of mineral claims located in three states in the prolific Tapajos Greenstone Belt in the Amazon Basin of Brazil. This area encompasses a total of 102 mining claims which are situated in the three western states of Amazonas, Mato Grosso & Rondonia. The primary mineral target is gold, however copper, nickel, iron ore, manganese and cassiterite (tin) are also found in the area. Most of the Amazonia properties are near existing roads and rivers which have access to international ports, as well as to small mining and farming communities, thereby giving Brazil Gold access to fuel, energy and manpower - conditions which are suitable for low-cost bulk tonnage mining.

The areas under tenure to Amazonia were selected for exploration by the Amazonia prospecting and exploration team because of the numerous producing or previously-producing gold mines on the lands which have been operated by local indigenous hand-miners, known as garimpeiros.

"We are extremely pleased to be closing this transaction and assuming control of this wonderful asset. The work to date on the property has given us a great incentive to close the acquisition and take advantage of the strong market for gold. We look forward to great success in Brazil" stated Brazil Gold VP & Director Phillip Jennings.

About Brazil Gold Corp.:

Brazil Gold Corp. is a publicly traded independent gold exploration company headquartered in Seattle, Washington, with an agreement to acquire over 861,000 hectares (2.1 million acres) of mineral exploration properties in the gold-rich western Amazon basin of Brazil, in areas that have seen significant historical gold production using only rudimentary evaluation and exploration methods. The stated objective of the Company is to explore for world-class gold deposits using modern technology in these untapped areas of minimal resource development. For more information, please visit www.brazilgold.com.

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. The statements by our officers, and other statements regarding optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

Contact Information

  • Brazil Gold Corp.
    Phillip E. Jennings
    Vice President & Director
    1-877-DIG-BRAZIL (1-877-344-2729)
    info@brazilgold.com
    www.brazilgold.com
    or
    Investor Relations
    NFC Corp.
    1-877-DIG-BRAZIL (1-877-344-2729)