Freepoint Commodities agrees to invest in Brazahav's Brazilian gold mine
Thursday, Jan 03, 2013
STAMFORD, Conn., Jan. 2, 2013 /PRNewswire/ -- Freepoint Commodities LLC, through its subsidiary Freepoint Metals & Concentrates LLC, has announced that it closed a structured debt finance transaction with Brazahav Resources, Inc. to fund the development and expansion of Brazahav's recently acquired Salinas Gold Mine, located near Pocone, Mato Grosso, Brazil. In conjunction with the financing, Freepoint Metals & Concentrates agreed to purchase 100 percent of the offtake of gold and silver derived from the Salinas mine. This is the first investment made by Freepoint Metals & Concentrates in the metals sector since being acquired by Freepoint Commodities in June 2012 from JPMorgan Chase & Co.
"The Cuiaba-Pocone mining belt has a long history of gold production and this transaction demonstrates that Freepoint can deliver physical merchant solutions that will provide opportunities to expand and modernize gold production in the area," said David A. Messer, CEO of Freepoint Commodities. "By providing both finance and offtake services, we are able to assist Brazahav in achieving its growth plan and add diversification to our metals trading platform."
"This is a new era for the Salinas Gold Mine and the Cuiaba-Pocone mining belt as Brazahav introduces the latest production and exploration technologies to this historic gold mining province," said Eric T. Allison, COO of Brazahav Resources, Inc. He added, "With this financing, Brazahav is well positioned to fast track its programs utilizing the extensive infrastructure and services currently in place, the superior knowledge of its local management and technical staff, and the expertise of global consulting firms such as SRK."
Casimir Capital L.P. acted as exclusive investment banker to Brazahav Resources, Inc.
Dean Street Capital Advisors acted as financial advisor to Freepoint Metals & Concentrates.
Stikeman Elliott LLP, Pinheiro Neto Advogados and Conyers Dill & Pearman acted as legal advisors to Freepoint Metals & Concentrates.
Ellenoff Grossman & Schole LLP, Machado De Campos, Pizzo E Barreto Advogados, FFA Legal, Gregory T. Chu and Hunte & Co. acted as legal advisors to Brazahav Resources, Inc.
About Freepoint Commodities LLC and Freepoint Metal & Concentrates LLC
Freepoint Metals & Concentrates LLC is a subsidiary of Freepoint Commodities LLC, which was founded by former Sempra Energy Trading executives. Freepoint Commodities LLC is based in Stamford, CT and launched multiple platforms in the energy and metals markets starting in March 2011. Management and private equity funds managed by Stone Point Capital have provided the initial equity capital for Freepoint Commodities LLC and its subsidiaries, including Freepoint Metals & Concentrates LLC, which is also based in Stamford, CT.
About Brazahav Resources, Inc.
Brazahav Resources, Inc. was organized in Canada in July 2011 to globally identify, acquire and develop gold and other mineral projects with an emphasis on Brazil. In November 2012, Brazahav acquired the Salinas Gold Mine, located approximately 25 km outside the town of Pocone in the state of Mato Grosso, Brazil. Brazahav's experienced management and technical team is rapidly advancing the project through improved and expanded production capabilities and detailed resource definition.
SOURCE Freepoint Commodities LLC