Jangada Mines plc, a natural resources company, is pleased to provide a corporate update further to the announcement dated 28 May 2019 regarding the proposed sale of Pedra Branca do Brasil Mineracao Ltda., the entity that holds Pedra Branca, to TSX-V listed ValOre Metals Corp.
Discussions between the Company and ValOre continue to advance. In anticipation of undertaking the Proposed Transaction, the Company has transferred its vanadium, titanium and iron rights, including the Ptombeiras Project, to a separate 99% owned subsidiary, VTF Mineracao Ltda ("VTF"); the 1% shareholder in the subsidiary, FFA Holding & Mineracao Ltda ("FFA"), is in agreement with the Company's development plan for Ptiombeiras. FFA is owned and controlled by Luis Azevedo, a Non-Executive Director the Company, and holds the shares in VTF for the benefit of the Company and in compliance with Brazilian laws which require two quota holders for limited liability companies.
The Ptombeiras Project is near but distinct from the PGM and nickel deposits at Pedra Branca. As per the announcement dated 11 March 2019, drill results at Ptombeiras confirmed the presence of a high-grade vanadium deposit with potential for significant resource delineation. The NI 43-101 compliant CPR is underway for the Ptombeiras Project and is on track to be delivered during Q3 2019.
In addition, in light of the Proposed Transaction, Celtic Capital Pty Limited ("Celtic") 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 US$1 million, previously offered by Celtic, which was due to expire in September 2019. 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.