Jangada Mines plc, a natural resources company, is pleased to announce that, further to its announcement on 2 August 2019, the remaining Conditions have been satisfied and, as such, the agreement to dispose of Pedra Branca Brasil Mineracao Ltda., the entity that holds the Pedra Branca Project, to ValOre (the "Disposal"), as set out in the circular posted to Shareholders on 17 July 2019 (the "Circular"), completed on 14 August 2019 ("Completion").
Accordingly, the Company has formally transferred ownership of Pedra Branca Brasil Mineracao Ltda. to PBBM Holdings Ltd., a wholly owned subsidiary of ValOre, in consideration for the issuance of 22,000,000 ValOre common shares to Jangada (the "Initial Consideration Shares"), and receipt by Jangada of the first tranche of cash proceeds in the amount of C$750,000. Following the issuance of the Initial Consideration Shares, Jangada will have a holding of 26 per cent in ValOre's then enlarged share capital.
The Company is also due to receive cash payments of C$2,000,000 over the next 6 months and up to 3,000,000 ValOre common shares over the next 3 years.
Please refer to the Circular for further information on the Disposal.
Jangada intends to use the majority of the net proceeds of the Disposal for the further development of Pitombeiras, which in the near term, would involve further drilling and metallurgical work. A NI 43-101 compliant CPR is already underway, which is expected to be completed by the Company during Q3 2019.
Jangada estimates that the time required to complete the next stage of development of the Pitombeiras project will be six months from Completion, at which time, further, informed decisions can be made as to the correct way forward.