SOURCE: Brazil Minerals, Inc.

Brazil Minerals, Inc.

December 03, 2014 09:45 ET

Brazil Minerals, Inc. Receives Contract for Sale of $200,000 in Sand From Mine

BELO HORIZONTE, BRAZIL--(Marketwired - Dec 3, 2014) -  Brazil Minerals, Inc. (OTCQB: BMIX) (the "Company" or "BMIX", including its subsidiaries), a U.S. company with revenues from sales of both polished and rough diamonds as well as gold, announced today that it had received a written contract for sale of sand from its Duas Barras mine in Brazil. Sand is a byproduct of the processing for diamonds and gold. The sand is sought after by the construction industry for cement preparation and other uses as cities near the mine are growing. 

BMIX sees this initial sales contract as an indication of the potential to capitalize on a scarce resource that it has in abundance. BMIX has recently tested its unprocessed sand, in natura, at the SGS-Geosol analytical laboratory. The results demonstrated silica levels of 97%, indicating high quality and meeting criteria for use in a wide range of applications.

BMIX is now studying volumetric analysis of the total amount of sand it has. The Company believes that the contract received and announced today would cover only a very small fraction of the amount of sand currently available. Furthermore, sand gets replenished as the diamond and gold recovery plant operates and produces it as a byproduct. 

Marc Fogassa, CEO and Chairman of BMIX, commented, "Our goal is to increase cash flows to fund operations. Sand has virtually no additional cost to us. It provides revenue diversification from diamonds and gold and predictability as it is sitting in piles or in bays and ready for transport. We are excited about exploring the potential of this mineral to add value to us."

About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTCQB: BMIX) is a U.S. company with revenues from gold and diamonds and ownership of interests in projects in diamonds, gold, high quality sand, titanium, vanadium and iron in Brazil. In particular, BMIX owns Mineração Duas Barras Ltda. ("MDB"), a Brazilian producer of diamonds (both rough as well as its own cut and polished), gold bars, and sand. MDB has a fully-operational mining concession, the largest alluvial processing plant for diamond and gold in Latin America, and the permit to export its production. 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.

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