Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

November 03, 2005 13:15 ET

Dia Bras Announces Conditional Exchange Approval Of $4 Million Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Nov. 3, 2005) - Dia Bras Exploration Inc. (TSX VENTURE:DIB) announced the conditional approval from the TSX Venture Exchange for a private placement of shares up to a maximum of 20,000,000 common shares at $0.20 per share for a total cash consideration of $4,000,000. The certificates representing these shares will bear a legend indicating the hold period of four (4) months following the closing of the placement. The Company anticipates that 20% of this private placement will be completed by insiders.

The net proceeds of this private placement will be used to improve the Malpaso mill - increasing the capacity by about 10% and improving the recovery and the quality of the copper and zinc concentrates currently being produced. Capital will also be expended on mine development, transportation upgrades and to cover operating expenses while concentrate production increases on the pilot-mining program at the Bolivar mine.

Commencing in November, Dia Bras anticipates processing 7,500 tonnes per month of ore grading a minimum of 2% Cu and 10% Zn. At the same time, the Company will pursue its exploration programs to expand their high grade resources at Bolivar and test skarn-hosted polymetallic targets elsewhere on the property.

About Dia Bras

Dia Bras is a Canadian mining and exploration Company focused on precious and base metals in the State of Chihuahua, northern Mexico. The Company continues exploration and the active development of its two key projects - Bolivar and Promontorio - in the world-renowned Sierra Madre mineral belt. The Company trades on the TSX Venture Exchange, under the symbol "DIB".

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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • Dia Bras Exploration Inc.
    Rejean Gosselin
    (514) 866-6001 ext. 241
    CHF Investor Relations
    Linda Armstrong
    Vice President
    (416) 868-1079, ext 229