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TORONTO, Aug. 20 /CNW/ - Amazon Mining Holding plc ("Amazon" or the
"Company") (AMZ: TSX-V) has elected to discontinue Terra Branca Diamond
Project ("Terra Branca") located in Minas Gerais state, Brazil.
Amazon's Board of Directors has determined that given adverse market
conditions, the Company has chosen not to exercise its option to acquire Terra
Branca. Amazon has ceased all ongoing property payments, returning control to
the underlying owner. The Company reports that attempts to vend or joint
venture Terra Branca to a third party have been significantly hampered by poor
market conditions.
Under the terms of the Terra Branca option agreement, Amazon was due to
pay $900,000 in August 2008 with a further $2,000,000 in subsequent staged
payments. Prospective project economics have weakened markedly since
commencement of the option agreement. The diamond market has seen little to no
change in the US dollar price for small to medium sized diamonds whilst the
currency (Brazilian Real) measured against the US dollar has appreciated
considerably. In addition, continuing weak market acceptance of alluvial
diamond projects deems it prudent to cease ongoing property payments further
protecting shareholder funds at this time.
Amazon confirms that subsequent to this announcement, the Company will no
longer hold any properties or exploration tenements requiring staged payment
obligations. Amazon has staked its Madeira property and is the sole owner of
those mineral rights.
Commenting, President & CEO Cristiano Veloso, said: "Despite our share
price performance, Amazon retains a strong treasury and a demonstrable ability
to identify noteworthy opportunities in Brazil. We view the Company as being
in an advantageous position in the small capitalization exploration peer
group. The continuation of challenging market conditions will afford new and
exciting opportunities".
About Amazon
Amazon is a mineral exploration company listed on the TSX Venture
Exchange engaged in acquiring and developing gold exploration properties in
Brazil. Its strategic focus is to acquire projects with demonstrated potential
for hosting economic gold deposits and to define resources through exploration
and drilling campaigns.
