Final CAD$1m received from ValOre

RNS Number : 4092C

Jangada Mines PLC

10 February 2020

 

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

10 February 2020

 Jangada Mines plc ('Jangada' or the 'Company')

Final CAD$1m received from ValOre

Jangada Mines plc, a natural resources company, is pleased to announce that it has received the final CAD$1,000,000 payment due from PBBM Holdings Ltd., a wholly owned subsidiary of TSX-V listed  ValOre Metals Corp. ('ValOre'), in relation to the disposal of the Company's previously owned project, Pedra Branca Brasil Mineracao Ltda ('Pedra Branca'), which was announced on 15 August 2019.

Under the terms of the binding share purchase agreement, as announced on 17 July 2019, Jangada sold its interests in Pedra Branca to ValOre for an aggregate consideration of the issue of 25,000,000 ValOre common shares and cash payments totaling CAD$3,000,000, payable in several tranches.  ValOre has now paid the third Post-Closing Payment of CAD$1,000,000 to Jangada, marking the final cash payment due.  500,000 Post-Closing Consideration Shares have also been issued to Jangada.  

Following issuance of the Post-Closing Consideration Shares, Jangada holds a total of 22,500,000 ValOre common shares, representing 24.9% per cent of ValOre's share capital.  The remaining 2,500,000 ValOre common shares due to Jangada are payable in six-monthly instalments of 500,000 shares each.

Funds received to date from the sale of Pedra Branca are being used to advance the Pitombeiras Vanadium Project in Ceara State, Brazil ("Pitombeiras"), which has a JORC (2012) Exploration Target of between 40 Mt to 60 Mt tonnes at 0.3% to 0.6% V₂O₅, 40% to 55% Fe₂O₃ and 8% to 10% TiO₂.  In January, the Company commenced a 2,500-metre drilling programme at Pitombeiras to test three prospective magnetic anomalies.  The drilling campaign is expected to provide the necessary technical information to support the compilation of a JORC compliant Mineral Resource estimate and a Preliminary Economic Assessment.

Defined terms are set out in the Share Purchase Agreement referred to in the announcement of 17 July 2019 unless stated otherwise.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

ENDS

For further information please visit www.jangadamines.com or contact:

Jangada Mines plc	Brian McMaster (Chairman)	Tel: [phone]
Strand Hanson Limited (Nominated & Financial Adviser)	James Spinney Ritchie Balmer Jack Botros	Tel: [phone]
Brandon Hill Capital (Broker)	Jonathan Evans Oliver Stansfield	Tel: [phone]
St Brides Partners Ltd (Financial PR)	Charlotte Page Beth Melluish	Tel: [phone]

 

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