Jangada Mines enters binding agreement for sale of Pedra Branca

The AIM-traded firm said the agreement was for the sale, subject to the satisfaction of a number of conditions, of 100% of its interest in Pedra Branca do Brasil Mineração - the entity that holds the Pedra Branca Project - to ValOre.

It said the maximum consideration payable for the disposal was an aggregate of approximately £5.64m, based on ValOre's financing price of CAD 0.25 per common share, pursuant to the VO Equity Raise.

“The disposal is of sufficient size relative to that of the group to constitute a disposal resulting in a fundamental change of business pursuant to Rule 15 of the AIM Rules and completion is, therefore, conditional upon the approval of shareholders,” the board said in its statement.

As a result, the board said it was posting a circular, along with a form of proxy, to shareholders convening a general meeting to be held on 2 August.