Jangada makes good progress with proposed sale of Pedra Branca

Natural resources company Jangada Mines updated the market on the proposed sale of Pedra Branca do Brasil Mineracao - the entity that holds Pedra Branca - to the TSX-V listed ValOre Metals Corporation on Monday.

The AIM-traded firm said discussions between itself and ValOre were continuing to advance.

In anticipation of undertaking the proposed transaction, it said it had transferred its vanadium, titanium and iron rights, including the Ptombeiras Project, to a separate 99%-owned subsidiary named VTF Mineracao.

The 1% shareholder in the subsidiary, FFA Holding & Mineracao, was in agreement with the company's development plan for Ptiombeiras.

FFA was owned and controlled by Luis Azevedo, a non-executive director of the Company, who held the shares in VTF for the benefit of the firm and in compliance with Brazilian laws which required two quota holders for limited liability companies.

The Ptombeiras Project was “near but distinct” from the PGM and nickel deposits at Pedra Branca, the board explained.

As it said in its announcement on 11 March, drill results at Ptombeiras confirmed the presence of a high-grade vanadium deposit with potential for “significant” resource delineation.

The NI 43-101 compliant competent person’s report was underway for the Ptombeiras Project, and was said to be on track to be delivered during the third quarter.

“In addition, in light of the proposed transaction, Celtic Capital and Jangada have agreed by mutual consent to terminate the funding arrangement, announced in September 2018, consisting of an undrawn 12-month unsecured loan facility for $1m, previously offered by Celtic, which was due to expire in September 2019,” the Jangada board confirmed in its statement.

“The loan facility has been terminated for nil fee and will not impact on the proposed development plan for Ptombeiras, or the company's general medium-term funding prospects.”