Brazil Minerals, Inc. (OTCBB:BMIX) is a diversified mining company currently producing diamonds and gold at its majority owned Mineracao Duas Barras Ltd. (Duas Barras) property located in central Brazil. BMIX also holds ownership interest in a diversified portfolio of gold, titanium, vanadium and iron exploration properties in Brazil. The Company’s long-term plan includes acquiring additional diamond properties becoming Latin America’s premiere diamond producer as well as developing a pipeline of revenue producing royalty based partnerships in a variety of natural resource properties.
The management team is comprised of talented individuals whose experience and intimate knowledge of the natural resources, diamond and financial markets specific to Brazil, offers the Company significant leverage in the Latin American mining industry.
Diamonds are a more stable investment vehicle than many other commodities like Gold and Silver and the prices paid for diamonds, both rough and polished is increasing. Rough diamond prices have risen 3% over the last few months and the market for polished diamonds is expected to grow by 4% in 2014 following a growth rate of 3.5% in 2013.
- Producing diamond mine
- Revenues from diamonds and gold
- Pure play in pro-mining jurisdiction of Brazil, world’s 5th largest economy
- Brazil climate allows for year-round mining
- Strong, well-connected and experienced management team
- Upside potential: NI 43-101 report only covers only 7% of the property
- Largest alluvial diamond processing plant in Latin America
- License to export diamonds from Brazil
Duas Barras Diamond Mine
The Mineração Duas Barras Ltda. Diamond mine is located in the state of Minas Gerais, Brazil, approximately 250 km north of the capital city, Belo Horizonte. The processing plant at Duas Barras is the largest alluvial processing plant for diamonds and gold in Latin America. It produces rough diamonds and gold, which is melted into bars with 96% content.
The property is on the left bank of the Jequitinhonha River which is well-known for its diamondiferous placer deposits. The area has hosted alluvial diamond and gold mining operations since the 18th century.
In May 2013, Brazil Minerals acquired majority ownership (55%) in Duas Barras property including the alluvial diamond and gold processing plant. The Duas Barras processing plant is designed to operate at 80 m3/hr and is capable of treating 240,000 m3/year.
In 2007, a NI 43-101 compliant Technical Report was completed on the Duas Barras property by the previous owner, Vaaldiam Resources. The Report states reserves of 432,000 carats of diamonds and 17,320 ounces of gold. The Mineral Resource Estimate contained in the report (see table below) only covers approximately 7% of the 422-acre property.
Duas Barras NI 43-101 Table of Resources:
|Mineral Resource||Volume (m3)||Diamond Grade (cts/m3)||Diamond Content (carats)||Fine Gold Grade (mg/m3)||Fine Gold Content (kg)|
In June 2013, results of a gemological analysis of approximately 300 carats of a rough diamond production lot from the Duas Barras plant were released. The highest expected color in the same was “E”, which corresponds to the second highest category in the GIA grading scale, referred to as “colorless.” The highest expected clarity in the sample was “VVS”, which also corresponds to the second highest category in the GIA scale, indicating that is “extremely difficult to see inclusion under 10X magnification.” The shapes seen in the sample were categorized into sawables, makeables, and flats, and included many well-formed octahedrons and dodecahedrons.
Brazil Minerals launched a Diamond Sales Portal in July, 2013, allowing the company to address increasing global interest in its rough diamonds produced at Duas Barras and gain exposure to an upside in pricing. Shortly after, the Brazilian federal government granted the Company a license to export its diamond production.
In December 2013, Brazil Minerals’ first lot of cut and polished diamonds achieved a Rapaport Diamond Price List of $5,400 per carat. In February 2014, the Company sold a lot of cut and polished diamonds to a Brazilian jewelry chain. The following month, the Company received US$500,000 from two U.S. high net worth individuals as payment on polished diamonds for delivery over a period of one year.
Our Team — Our Finest Asset
Marc Fogassa – Chairman & CEO
Mr. Fogassa has a 15-year career in private equity/venture capital and public equity investments. He has extensive direct investing experience, including cross-border deal structuring, due diligence, management build-up, and Board of Directors oversight. He was born and raised in Brazil, and speaks Portuguese fluently. In 2012, he founded Brazil Mining, Inc., currently the largest shareholder of BMIX.
Mr. Fogassa is frequently invited as an international speaker on Brazilian issues, and has written an op-ed in one of Brazil’s foremost newspapers. Mr. Fogassa has worked at Goldman Sachs & Co. and Atlas Venture, and has been a director on the Board of several private companies.
Mr. Fogassa double-majored at the Massachusetts Institute of Technology, earning Bachelor of Science degrees in Electrical Engineering and Biology. He subsequently graduated from the Harvard Medical School with a Doctor of Medicine degree and later from the Harvard Business School with a Master in Business Administration degree.
Jay Weil – General Counsel
Mr. Weil has more than 35 years of legal experience, having represented public and private companies and individuals in a wide range of business transactions and securities laws compliance matters. He has experience on a broad range of corporate and securities law, including the preparation of contracts and SEC filings, advice on the law, and development of strategies regarding business terms of deals. Mr. Weil also handles all phases of both public offerings and private placements of securities as well as reverse mergers and secured and unsecured debt financing. He has also experience in mergers and acquisitions.
Prior to joining BMIX as General Counsel, Mr. Weil had worked on matters of Brazil Mining and BMIX since the inception of these companies, as a partner with law firm Ofsink LLC in New York from 2003 to 2014. Previously, Mr. Weil was a securities and corporate partner with the New York office of Wolf, Block, Schorr and Solis-Cohen, then a regional law firm with more than 200 attorneys, and prior to that a partner in a 30-attorney firm. Mr. Weil began his career as an associate in the corporate securities practice of Shea & Gould in New York, New York. Mr. Weil has a J.D. from the NYU School of Law, and a B.A. from Binghamton University.
Robledo Dela Torre Ribeiro – Head of Operations, Brazil & VP of Finance & Administration
Mr. Ribeiro has substantial experience in both the diamond business and private equity, and experience in managing hundreds of employees. His family controls GAR Mineração S.A., one of the largest diamond-mining companies in Brazil. At GAR, he was General Manager and headed activities and projects in operations, finance, administrative, and mining department and government relations. BMIX has benefited from a very productive relationship with GAR and has located its Belo Horizonte office in the same building as the GAR headquarters.
Previously, Mr. Ribeiro was an Investment Associate with Culturinvest Investimentos S.A., a private equity fund in Brazil. Mr. Ribeiro has a master degree in Corporate Economics, and an undergraduate degree in Business Administration.
Fernando Manuel Duarte Vieira – Chief Mining Engineer
Mr. Vieira has 37 years of mining experience and is a well-known mining engineer in Brazil. He was General Manager for Mineração Tejucana S.A., one of the most successful companies that have operated in alluvial diamond mining in Brazil. At Tejucana, he ran the mining operation, and had wide responsibilities in operational, commercial, administrative, and government relation areas. Prior to Tejucana, Mr. Vieira was the General Manager for TP Mineração S.A., a producer of alluvial gold in Brazil.
Mr. Vieira has solid experience and knowledge in the management and development of diamond and gold projects. Additionally he has the entrepreneurial dedication needed for our team. He has a working relationship with the Brazilian National Mining Department on numerous occasions and has expertise in licensing and maintenance of mineral rights.
Mr. Vieira has also worked as executive for Amazon Resources and Escom Mining, both alluvial diamond and mining companies. His degree is in Mining Engineering from Universidade Técnica of Lisbon, Portugal.
João Carlos Herrmann, Ph.D. – Director, Geology
Dr. Herrmann has a 30-year career as a geologist specializing in diamond and gold projects. He has produced all types of reports needed for exploration of mineral deposits in Brazil, and has experience in the environmental reports and necessary licensing guidelines.
He has a Bachelor degree in Geology from the Universidade do Vale dos Sinos, and his Doctorate in Geology is from Universidade Estadual Paulista. He has multiple specialization and advancement courses in environmental sciences. Dr. Herrmann is a licensed geologist in Brazil.
Bruno De Azevedo Araújo – Consultant
Mr. Araújo is a professionally licensed accountant in Brazil. Previously he was a member of the financial team of a private equity fund in Brazil.
Mr. Araújo has a Bachelor’s degree in Accounting and is currently enrolled in a Master’s in Business Administration degree program. He has experience as a consultant and business manager for companies in a variety of industries.
Márcio Adriani Fonseca – Director, Diamond & Gold Operations
Mr. Fonseca is the General Manager of Mineração Duas Barras. He is responsible for supervision of the excavation of the various fronts, recuperation and renewal of explored areas, and final diamond and gold processing at the plant. He directly supervises the employees at the facility and interfaces with service providers on a daily basis.
Mr. Fonseca has over ten years of experience in all aspects of operations and environmental regulations for alluvial gold and diamond mining. Mr. Fonseca has a degree in Forest Engineering from the Universidade Federal dos Vales do Jequitinhonha e Mucuri – UFVJM, and several advanced courses completed.
Ambassador Roger Noriega – Director
Ambassador Roger Noriega is an independent member of the Board of Directors of Brazil Minerals, Inc. Mr. Noriega was U.S. Assistant Secretary of State from July 2003 to August 2005. In that capacity, Mr. Noriega managed a 3,000-person team of professionals in Washington and 50 diplomatic posts to design and implement political and economic strategies in Canada, Latin America, and the Caribbean.
Previously, Mr. Noriega was Ambassador to the Organization of American States (OAS), from August 2001 to July 2003. In this capacity, Mr. Noriega coordinated complex and sensitive multilateral diplomacy in a 34-member international organization to bolster OAS efforts to promote trade, fight illicit drugs, and defend democracy.
Mr. Noriega has been decorated by the Governments of Nicaragua and Peru, and has received numerous awards for public service from organizations committed to the promotion of democracy in the Americas. Mr. Noriega is the founder and managing director of Visión Américas LLC, which advises U.S. and foreign clients on international business issues.
Ambassador Paul Durand – Director
Ambassador Paul Durand is an independent Member of the Board of Directors of Brazil Minerals, Inc. Mr. Durand has had extensive international experience in both the private and public sectors. From 1992 to 1995, Ambassador Durand was Canada’s Ambassador to Costa Rica, with concurrent accreditation to Honduras, Nicaragua and Panama. From 1995 to August 2000, he was Director General responsible for Canada’s relations with Latin America and the Caribbean in the Department of Foreign Affairs and International Trade. In August 2000, he was appointed Canada’s Ambassador to Chile. In August 2001, he was appointed Ambassador to the OAS in Washington and Canada’s National Coordinator for the Summits of the Americas process, positions that he held until 2006. From 2007 until 2009 he was the resident representative of the OAS in the Dominican Republic.
Mr. Durand has participated in numerous electoral observer missions in Central and South America, and was appointed to lead the OAS observer mission to the 2006 elections in Costa Rica, as well as the OAS Mission to observe the referendum on free trade in Costa Rica in 2007. In Canada’s diplomatic service, Mr. Durand specialized in Latin America, but also served in East Africa and South Asia (India and Nepal). He worked for the Canadian International Development Agency and also as a foreign policy advisor in the office of the Canadian Prime Minister (Privy Council Office), before joining the Department of Foreign Affairs and International Trade.
Luis Mauricio Ferraiuoli De Azevado, J.D. – Director
Mr. Azevedo is an independent Member of the Board of Directors of Brazil Minerals, Inc. Mr. Azevedo is both a licensed lawyer and geologist with 25 years of business and mining experience in Brazil. He is currently the Managing Partner at FFA Legal, a legal firm he founded with main office in Rio de Janeiro, Brazil, and which is focused solely on natural resources companies. His practice is highly active in mergers in acquisitions for companies owning mineral assets and/or operating mining enterprises in Brazil. His experience spans industrial minerals, diamonds, and precious metals, and he continually works in contact with the highest federal levels of all branches of government in Brazil. Prior to his election to the Board of Directors of the Company, Mr. Azevedo had served on its Board of Advisors since July, 2013.
Mr. Azevedo previously worked for Western Mining, Barrick Gold, and Harsco. He assembled land packages that resulted in four initial public offerings of Canadian companies in Brazil (Talon, Avanco, Beadell, and Carnavale) since 2004. In addition to his Board seat at the Company’s Board, he is currently on the Board of Directors of three mining companies: Avanco, Avenue, and Talon Metals. Mr. Azevedo received a Geology degree from UERJ – Universidade do Estado do Rio de Janeiro in 1986, a Law degree from Faculdade Integradas Cândido Mendes in 1992, and a Master of Law degree from PUC-Rio, Pontifícia Universidade Católica of Rio de Janeiro in 1995.