Thursday, February 4, 2010

Brazilian Gold Corporation through its BVI subsidiary signed Definitive Agreement on Boa Vista Project in Brazil

Brazilian Gold Corporation, the Canadian public company focused on acquisition, exploration and development of mineral properties in the Tapajos region of Brazil, signed a Definitive Agreement through its wholly owned British Virgin Islands-registered subsidiary Cabral Resources (BVI) Ltd. with Golden Tapajós Mineracão Ltda., Octa Mineracão, Ltda. and D'Gold Mineral, Ltda. The agreement is for the acquisition of a 51% interest in Boa Vista Gold Inc. that will be the indirect holder of the rights to the Boa Vista Project through its ownership of Golden Tapajós. 55% of Boa Vista Gold, which is incorporated in the British Virgin Islands, is owned by Octa Mineracão and 45% by D'Gold. The Definitive Agreement for this transaction was signed on January 21, 2010.

Under the terms of the Definitive Agreement, Octa and D'Gold are transferring their 100% interest in Golden to BVG. Cabral Resources (BVI) must undertake the following actions, in order to get a 51% interest in BVG: pay to Octa and D'Gold the amount of US$600,000 on the closing date which is on or before February 26, 2010, and incur US$3,000,000 in exploration expenses on or before the second anniversary date of signing the Definitive Agreement (First Option). Upon fulfilling this, Octa and D'Gold must notify Cabral within thirty days of whether it wants to form a Joint Venture or grant the Second Option to earn an additional 19% interest in BVG.

The Boa Vista Project is located near the southern border of the Tapajós Mineral Province. The Project includes a number of historic alluvial deposits partially explored by Golden Tapajós. Cabral Resources (BVI) Ltd. intends to undertake a systematic exploration program over the Project, and make detailed geological mapping, geochemical and geophysical surveys.