Jangada Mines plc, a natural resources company, is pleased to announce its audited annual financial results for the year ended 30 June 2019. The Company will today be posting the annual report & accounts to Shareholders, together with a notice convening the annual general meeting.
· Early in the financial year, agreed a total fundraise package of £2.1 million to advance the Pedra Branca Project in Brazil
· Progressed a bankable feasibility study ("BFS") at Pedra Branca through to completion of the verification stage
· Completed exploration activities at the Pitombeiras West vanadium deposit in north eastern Brazil, which confirmed continuous high-grade vanadium, titanium and iron grades at surface
o Average grades for vanadium and titanium 3x higher than initially anticipated
· Refocused operations through the sale of Pedra Branca do Brasil Mineracao Ltda., the entity that holds 100% of Pedra Branca rights, to TSX-listed ValOre Metals Corp in a cash and shares deal
· Dedicated team and further resources to the development of Pitombeiras
· Work planned at Pitombeiras includes further drilling and metallurgical work - a JORC (2012) compliant Preliminary Economic Assessment is underway and expected to be completed in late Q1 2020
During the year ended 30 June 2019, the Company continued its investment in the Pedra Branca Project ('the Project') in Brazil, supporting its economic prospects with an updated flowsheet that reduced its estimated CAPEX and identifying significant resources including nickel, copper sulphide, vanadium and titanium.
In the early part of the financial year, the Company agreed a total fundraise package of £2.1 million that allowed the Company to advance the Project towards a bankable feasibility study ('BFS'), quantifying the value of the nickel sulphide deposit, and undertaking exploration drilling at the vanadium project.
In January 2019, we announced our fully funded Q1 2019 work programme, which focussed on progressing the BFS through to completion of the verification stage. The delivery of a BFS for the PGM and nickel assets to further confirm Pedra Branca's technical and economic viability represented a significant milestone in the development of the Project.
In February 2019, we provided an update on our vanadium exploration activities at the Pitombeiras West vanadium deposit ('Pitombeiras') having completed an expanded outcrop sampling campaign. Results from 72 samples confirmed continuous high-grade vanadium, titanium and iron grades at the surface, with the average grades for vanadium and titanium being three times higher than initially anticipated by management. With these exciting results confirmed and given the overall demand for vanadium looks likely to grow strongly, primarily driven by its importance in energy storage, the Board made the decision to focus its resources on pursuing the development of Pitombeiras.
Accordingly, the Board took the decision to refocus the Company's operations through the sale of Pedra Branca do Brasil Mineracao Ltda., the entity that holds 100% of Pedra Branca rights to TSX-listed ValOre Metals Corp. ("ValOre"), to ensure a stronger foundation for the future development of the Project. In doing so, we could dedicate our team and further resources to the development of Pitombeiras in north eastern Brazil, whilst retaining an indirect exposure to the development of Pedra Branca.
The Board believes that ValOre will likely receive stronger support from the North American financial markets for the development of Pedra Branca. The Board continues to believe that Pedra Branca has strong potential; this is supported by the fact that a condition of the sale was the Company becoming a substantial shareholder of ValOre. Following the issuance of the initial consideration shares, Jangada owns a significant holding of 25 per cent in ValOre's enlarged share capital.
The disposal of Pedra Branca was completed post the balance sheet date. The cash consideration will support the Company's working capital requirements and allow it to substantially progress the development of Pitombeiras, which will involve further drilling and metallurgical work. A JORC (2012) compliant Preliminary Economic Assessment is underway and expected to be completed in late Q1 2020.
The Board believes the Company is an attractive proposition following the sale of Pedra Branca and the refocus on Pitombeiras. With a healthy balance sheet following the sale, the Company is well positioned to develop this exciting project.
As always, the Board would like to thank our team for their work and our shareholders for their continued commitment to Jangada.