Armadillo is to acquire 100 per cent interest in the Amazon basin, Brazil. However, the investment remains subject to regulatory approval. Even so, Armadillo last year announced it had signed the final letter of intent with Rusheen Handels AG, a private company based in Zurich, allowing Armadillo to acquire a 50 per cent interest in the issued units of Amazonia Capital E Participants Ltda., a private company based in Brazil.

Amazonia is 99 per cent owned by Rusheen Handels AG and 1 per cent by Kym Keaves of Brazil. The company will assume 100 per cent of Amazonia's expenses, the responsibility to complete a $1.5-million initial exploration program and issue 250 million common shares to the Rusheen Handels Group. There will be a 1.5-million-share finder's fee associated to this acquisition.

Amazonia is the registered owner of 860,000 hectares of exploration concessions in northern Brazil. The property encompasses 116 mining claims in good standing located in the states of Amazona, Mato Grosso and Rondonia. Most of the claims have been staked over Archaen to Lower Proterozoic greenstone belts, which are considered to be prospective for gold.

Gold production by natives (garimpeiros) in northern Mato Grosso from the end of the 1970s to 2000 is reported by the National Department of Mineral Production to have totalled 123 tonnes (Tobia da Silva, 2008). Management and consulting geologists are currently preparing a 2011 work program on the Amazon basin projects, and this will be announced once finalized.

Armadillo is a publicly traded company listed on the TSX Venture Exchange and co-listed on the CNSX with a mandate to acquire, explore and develop base and precious metals properties throughout North & South America. It is headquartered in Vancouver, British Columbia and joint ventured with a CNSX listed company to develop the Waverley-Tangier silver/zinc/lead property in the Revelstoke Mining District, British Columbia.

In July 2010, Armadillo agreed to purchase a 100 per cent interest in the LD gold property located southeast of Atlin, British Columbia, from a privately held group. In addition, the firm was negotiating an acquisition in the Amazon Basin of northern Brazil of approximately 860,000 hectares of exploration concessions.

Brazil Gold Corp. last year signed a definitive agreement with Rusheen Handels AG to acquire the ownership rights to 99% of Amazonia Capital e Partipacoes Ltda. Amazonia is the current owner of the exclusive right to explore an extensive 2.1 million acre land package of mineral rights in the Amazon basin region of Brazil.

22 February 2011