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Sao Luis Mining Inc.:
Digging For Diamonds In Brazil by Glenn
Wilkins - AllPennyStocks.com News Reporter
July 26,2006 (AllPennyStocks.com Media, Inc.) - Diamonds
remain a girl's best friend, and an investor's, too. Or so a
company out of Las Vegas believes, which is why Sao Luis
Mining Incorporated
(Pink Sheets:SAOL) is becoming as active as it has
done recently. Sao Luis sees enormous potential for diamonds
and other precious metals in Brazil, where its mining
activities have been conducted, with impressive results. It is
through this exploration and marketing activity that it hopes
to continue its prosperity for years to come.
Sao Luis focuses on bringing diamonds and precious metals
to market, seeking out and acquiring mineral assets in both
North and South America. Most recently, though, those efforts
have been focused in Brazil, through a joint venture of which
it owns a 35-per-cent interest, with an option to buy a
65-per-cent interest in a second diamond property. The Company
continues to pursue undeveloped and in-production mineral
assets.
Rough diamond mining companies pull some 114 million carats
of rough (uncut precious stone) from the earth, worth billions
of dollars and providing jobs to about two million people
around the globe in the processing, distributing and retailing
end of jewelry.
Sao Luis is well positioned to become a major supplier of
diamonds to the international diamond cutting centers and
diamond dealers worldwide. The prices for diamonds continue to
rise. The demand surpasses the supply and recent studies have
shown that this shortage will continue to grow. Due to civil
unrest in many of the producing African countries,
international mining companies are aggressively acquiring
properties in Brazil.
Experienced investors keep an eye peeled on the mining
sector for when the economy looks ailing or when the stock
markets head downward. It's usually good, they say, to have
precious metals and/or petroleum in their portfolio. Which is
why this stock merits a look.
Other factors behind the Company's potential relate to its
strong management team, established operations, and the
acquisition of joint venture partnerships. Sao Luis, which
just recently started trading on the Pink Sheets under the
symbol SAOL, did so at a fairly low level, thus creating a
ground-floor opportunity for potential buyers.
The Company has done well by its activity near the town of
Juina, in the Mato Grosso state of Brazil, having joined with
SL Mineradora in a joint venture. Mineradora has operated the
mine for the last five years, and seen it produce over 175,000
carats. SAOL's contribution will be $2 million (all figures in
U.S. dollars unless specified otherwise) once its due
diligence has been completed.
The second property on which the two companies will
collaborate is also near Juina, of which SAOL will have a
65-per-cent share.
Sao Luis President Jack Lake has managed several domestic
and international companies in industries including mining,
telecommunications, manufacturing, and software development.
He founded and chaired Interactive Solutions Corporation,
which developed and marketed gaming software for the casino
industry and personal use.
One of its directors is Indian-born Lalit Kothari, who now
owns three jewelry companies and operates a gem cutting and
jewelry factory in Bangkok. His clientele is worldwide and
include customers such as Neiman Marcus, Zales, Fred Meyer,
Federated, Sears, and Wal-Mart.
The Company's determination to get its name out was
manifested once again this month when it announced an Investor
Relations agreement with Swiss-based Juerg Kaempfer, who
brings an extensive background in capital markets, private
placements, corporate law, and European mergers and
acquisitions.
So confident was the company in the strength of these
properties and its future prospects that it announced a
40-for-one stock split for early June of this year. Lake
expressed the view that the split would allow for an "active
market for our common shares to develop" and improve liquidity
and ease efforts to raise capital for future projects.
Since that split, the stock price has rebounded to very
near its 52-week high around the dollar mark. So going back to
the beginning, you can now see how diamonds are not only a
girl's best friend, but anyone lucky enough to invest in this
precious metal.
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