VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 25, 2012) - Luna Gold Corp. (News - Market indicators)(OTCQX:LGCUF)(LMA:LGC) ("Luna" or the "Company") is pleased to announce the sale of the Company's Cachoeira Project to Brazil Resources Inc. ("BRI") achieved completion today. This sale was previously announced in a news release dated July 11, 2012.
Pursuant to the transaction, all of the shares of Luna Gold (International) Corp. ("Luna BVI"), which indirectly owns 100% of the Cachoeira Project, were sold to BRI for a consideration valued at approximately $12 million. This consideration consisted of both cash and shares of BRI. $500,000 in cash and 1,428,000 common shares of BRI ("BRI Shares") were paid and issued to Luna at closing. Additional consideration payable to Luna by BRI includes:
| i) |
$300,000 cash and 1,214,000 BRI Shares within 12 months of closing the transaction; |
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| ii) |
$300,000 cash and 1,214,000 BRI Shares within 30 days of receipt of approval of a mine development plan by the National Department of Mineral Production (Brazil) (DNPM) and the environmental preliminary licences for a gold mining operation relating to the Cachoeira Project; |
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| iii) |
$2,500,000, payable in cash or BRI Shares, at BRI's sole discretion, upon commencing mine construction at the Cachoeira Project, consisting of completion of $500,000 of expenditures towards such construction; and |
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| iv) |
$3,000,000, payable in cash or BRI Shares, at BRI's sole discretion, one year after achieving commercial production at the Cachoeira Project. |
Notwithstanding the foregoing milestones, all of the payments from BRI to Luna will become due and payable four years after the closing date of the transaction.
About Luna Gold Corp.
Luna is a gold production and exploration company engaged in the operation, exploration and development of gold exploration projects in Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
John Blake - President and CEO
Website: www.lunagold.com
Forward-Looking Statements
This release contains certain "forward-looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to future gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
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