Placing to Raise £1.25 million

RNS Number : 7166P

Jangada Mines PLC

19 February 2021

 

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

19 February 2021

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

Placing to Raise £1.25 million

Jangada Mines plc, a natural resources company, is pleased to announce it has raised £1.25 million via a placing of 13,888,888 new Ordinary shares of £0.0004 each in the Company (the 'Placing Shares') at a price of £0.09 per Placing Share (the 'Placing Price') (together the 'Placing') through Brandon Hill Capital.

The net proceeds of the Placing will primarily be used for the continued development of the Company's 100%-owned Pitombeiras Vanadium Project ('Pitombeiras' or the 'Project'), Ceará State, Brazil.   

Background to the Placing

The Company has been making great strides in its development of the Pitombeiras Vanadium Project, recently announcing the results of a Preliminary Economic Assessment ('PEA') which confirmed that Pitombeiras has robust economics and excellent potential to become a profitable producer of Ferrovanadium concentrate (62%/65% Fe, plus V2O5 credit).  Highlights of the PEA, which was based on the Project's current 5.5Mt resource, include: US$106.5 million post-tax Net Present Value ("NPV8%"); 317.8% post-tax Internal Rate of Return ("IRR"); CAPEX totalling US$9.5m; and three-month payback time (see announcement of 16 February 2021 for further details).

Jangada is focused on maintaining the positive momentum behind the Project and the net proceeds raised will provide sufficient resources to fund ongoing work streams as part of a revised PEA currently underway, which the Company believes has the potential to further improve the Project's economics.  The revised PEA is expected to be completed in Q2 2021 and will incorporate the results of the current ongoing drilling programme, which is focused on expanding the Project's mineral resource base and the completion of metallurgical testing, which will provide the basis for product placement discussions with potential traders and off-takers. 

Brian McMaster, Executive Chairman of Jangada, said: "We are delighted to have received such strong support in completing this placing, which further strengthens our confidence in the Pitombeiras Vanadium Project. The recent PEA confirmed that Pitombeiras is a project with very robust economics and remarkable potential for further growth. These funds will allow us to continue to demonstrate this during the first half of 2021 as we look to complete the drilling programme at the Project, deliver upgraded and expanded resources and complete the new metallurgical tests, which will provide the basis for discussions with potential traders and off-takers. The Company is now fully funded to complete the next stages of its work programme. I look forward to providing further updates as we make progress with these workstreams."

Issue of Broker Warrants

As part payment for Brandon Hill Capital's services in relation to the Placing, it has been issued with 694,444 warrants to subscribe for new Ordinary Shares, exercisable at the Placing Price, for a period of three years.

Admission and Total Voting Rights

The Placing Shares will rank pari passu with the existing ordinary shares of £0.0004 pence each of the Company ("Ordinary Shares") and application for the admission to trading on AIM of 13,888,888 new Ordinary Shares will be made. Admission to trading on AIM of the Placing Shares is anticipated to occur on 25 February 2021.

Following admission to trading on AIM of the Placing Shares, the Company will have 256,002,032 Ordinary Shares in issue, each with voting rights. Accordingly, 256,002,032 Ordinary Shares may be used by shareholders as the denominator for the calculations which will determine whether they are required to notify their interest in the company, or any change to that interest, under the Financial Conduct Authority's Disclosure and Transparency Rules.

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)	[e-mail]
Strand Hanson Limited (Nominated & Financial Adviser)	James Spinney Ritchie Balmer Jack Botros	[e-mail]
Brandon Hill Capital (Broker)	Jonathan Evans Oliver Stansfield	[e-mail]
St Brides Partners Ltd (Financial PR)	Isabel de Salis Beth Melluish	[e-mail]

 

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