Adriana Resources Inc. [TSX-Venture: ADI] To Develop World Class Port in Brazil

August 22nd, 2007

I wrote an article about Adriana Resources about a month ago where I praised the management team and talked about how this company has some great projects on the go. Since that time, as you well know, the markets have been dropping like a hot potato. Some of the mining and exploration companies have been hit the worst. I remember back when ADI traded for above $1.10! Now it sits at $0.80. I guess that can be expected when everyone is panicking… the riskiest investments will drop the most. Well, Adriana Resources does have some extreme potential on the mining and exploration side of things; they have advanced and early stage projects located in Canada, Finland, and now Brazil.

Today, Adriana Resources released an interesting news release. As the management team continued to look around the world for great mining and exploration opportunities, they found an infrastructure opportunity in Brazil and decided to capitalize on it (I love how the management team isn’t afraid to go into related business ventures when they spot an opportunity). ADI decided it wanted to secure some land on the coast of Brazil so they would have access to the rail and transportation system in Brazil, a resource rich country. Adriana Resources has now secured that land and is a 75% owner of Brazore Holdings (the 25% holder is Athena Resources LLC based in New York). The Company also has a strategic relationship with Seabulk Systems to assist in port development.

Brazore’s plan is to build and operate an iron ore mining and export business in Brazil through port development, shipping solutions, and the acquisition of third party mineral rights with the potential for large scale mineral resources.

Adriana Resources must meet the following requirements to maintain a 75% ownership in the project:

1. Pay $5,000,000 US by October 20, 2007. (It has already paid $500,000)
2. Pay $18,000,000 US by November 29, 2007.
3. Pay an additional $33,000,000 US by August 20, 2009.

The above fees will be used to build the port, purchase the port site, pay engineering costs, and other development fees.

One thing you must remember is that Adriana Resources only has a $21 million dollar capitalization! It has 4 great mining exploration projects being run by a world class team (with huge successes in the past), and that team is continually looking for more as they advance the properties they have. Now they will also have access to Brazil through a subsidiary that is building a world class iron ore port that will cost over $50 million dollars to build. I’d be willing to bet Adriana will be purchasing some exploration property and mineral rights in Brazil now that they plan on building infrastructure there.

Geez, I was excited about the exploration properties they already had… now they are developing a solid port facility that helps give the company some revenues regardless of whether it makes any finds on its current properties. This revenue may help the company fund some more drilling and exploration on current properties so they don’t have to worry about cash flow as much. I’ll be watching this stock closely to see how things pan out. I may take this as a chance to buy some more shares for cheap, as the company was recently conducting multi-million dollar private placements for $1.10 a share.

Snap Shot

Company Name: Adriana Resources Inc.
Stock Symbol: [TSX Venture: ADI]
Total Number of Shares: 32,783,177
Stock Price: $0.80
Market Capitalization: $21,275,742
52 Week High: $1.49
52 Week Low: $0.450
Website: www.adrianaresources.com

Full disclosure: I own shares in ADI.

Entry Filed under: Mining, Investing