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| | Mon May 31, 2010
Sale of Canastra Project
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| | Vancouver, Canada -- May 31, 2010 - (TSX.V: BZD) ("Brazilian Diamonds" or "the Company") announces that Mineracao do Sul Ltda. ("MdS"), the Company's wholly-owned subsidiary, has entered into a Heads of Agreement with Qualimarcas Comercio E. Exportacao de Cereais Ltda. and Socios Quotistas de Mineracao do Sul Ltda. (collectively the "Vendors") wherein MdS has agreed to sell and the Vendors have agreed to purchase all of the shares of MdS which includes the assets of the Canastra Project.
The cash consideration for the acquisition of Mineracao do Sul is for a total of R$1.100.000 (US$640,000). The Vendors have already made a deposit of R$100.000 and are now conducting its due diligence. A further R$1.000.000 will be paid on the closing of the transaction. The sale is subject to the approval of the TSX Venture Exchange and the approval of the shareholders which shareholder approval will be sought at the upcoming Annual and Special Meeting to be held July 29, 2010.
The proceeds of this transaction will be used to repay Company debt and to provide working capital to fund the Company's efforts to pursue new opportunities.
Stephen Fabian, Brazilian Diamonds President and CEO, said "We are pleased to have signed this important Heads of Agreement for the Canastra project. It has been a difficult time in Brazil for junior diamond explorers and we are now able to move forward with a clean company in order to evaluate other exciting opportunities."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Kenneth P. Judge, Chairman
Tel: + 44-7733 001 002
Stephen Fabian, President & CEO
Tel: + 33 6439 10649
Jon Bey, Investor Relations
Tel: 1-866-689-2599
Email: jbey@braziliandiamonds.com |
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