The Amazon Basin Gold Project was brought to Armadillo's attention by John Young who originally discovered and staked it for Swiss property owner Rusheen Handels AG. Young has a long and very profitable history in the mining business. He was instrumental in identifying early stage gold prospects and seizing opportunities that created several major NYSE listed companies including Gammon Gold's Ocampo Chia project, Mexico's second largest gold producer, Kinross' Kaspersky Hory project in the Czech republic, which is the second largest gold deposit in Europe and the Tonkin Springs project with approximately 1.4 million ounces of gold in place currently being developed by US Gold Corp.
In October 2010, Armadillo signed a letter of intent with Rusheen Handels AG, a private company based in Zurich ("RH"), to acquire approximately 50% of the issued Units of Amazonia Capital E Participacoes Ltd. a private Company based in Brazil ("Amazonia") (the "Purchase"). Amazonia is ninety nine percent owned by Raheen Handels AG and one percent by Kym Keeves of Brazil. In February 2011, the letter of intent was re-negotiated with RH to include 100% ownership of Amazonia. Armadillo is to pay 25,000,000 common shares for this acquisition.
Amazonia is the registered holder of approximately 860,000 hectares consisting of 116 o mineral claims in northern Brazil. The Company paid $310,000 on signing the initial letter of intent and at closing is to issue 12,500,000 shares of the Company. The finder's fee of 750,000 shares will be increased to 1,500,000 shares. In addition, Armadillo will assume 100% of Amazonia expenses.