Further CAD$1m Received From ValOre

RNS Number : 3463T

Jangada Mines PLC

14 November 2019

 

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

14 November 2019

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

Further CAD$1m Received From ValOre

Jangada Mines plc, a natural resources company, is pleased to announce that it has received a further CAD$1m in cash from PBBM Holdings Ltd., a wholly owned subsidiary of TSX-V listed company 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, Jangada sold Pedra Branca to ValOre for a total consideration of 25,000,000 ValOre common shares and cash payments totalling CAD$3m, which are payable in several tranches.  ValOre has now paid the second cash tranche of CAD$1m to Jangada, meaning a total of CAD$2m in cash and 22,000,000 ValOre common shares have been received by Jangada. A final cash payment of CAD$1m is payable in three months from now, as well as up to 3,000,000 ValOre common shares, payable in six-monthly instalments of 500,000 shares each over the next three years. The first instalment of 500,000 shares is due in approximately three months from now.

Jangada currently has a circa 25 per cent interest in ValOre, which is advancing, alongside its other projects, the development of Pedra Branca; it recently published a Q4 Update Presentation on its website, which highlights the value drivers and near term expansion potential of Pedra Branca: https://bit.ly/34iapwE.

Jangada is using the cash received to date from the sale of Pedra Branca to develop the Pitombeiras Vanadium Project in Ceara State, Brazil ("the Project"), 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.  On 4 November 2019, the Company provided an update on its exploration programme at the Project following the highly encouraging results obtained so far, which highlighted the significant potential of this vanadium, titanium, iron project.  At the end of the planned exploration schedule and along with the conclusions of the logistics study, the Company will have substantial information to prepare a robust preliminary economic assessment in Q1 2020. 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

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)	Isabel de Salis David Penson	Tel: [phone]

 

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