Jangada Mines PLC Placing to Raise GBP1.25 million (7166P)
February 19 2021 - 2:00AM
UK Regulatory
TIDMJAN
RNS Number : 7166P
Jangada Mines PLC
19 February 2021
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
19 February 2021
Jangada Mines plc ('Jangada' or 'the Company')
Placing to Raise GBP1.25 million
Jangada Mines plc, a natural resources company, is pleased to
announce it has raised GBP1.25 million via a placing of 13,888,888
new Ordinary shares of GBP0.0004 each in the Company (the 'Placing
Shares') at a price of GBP0.09 per Placing Share (the 'Placing
Price') (together the 'Placing') through Brandon Hill Capital.
The net proceeds of the Placing will primarily be used for the
continued development of the Company's 100%-owned Pitombeiras
Vanadium Project ('Pitombeiras' or the 'Project'), Ceará State,
Brazil.
Background to the Placing
The Company has been making great strides in its development of
the Pitombeiras Vanadium Project, recently announcing the results
of a Preliminary Economic Assessment ('PEA') which confirmed that
Pitombeiras has robust economics and excellent potential to become
a profitable producer of Ferrovanadium concentrate (62%/65% Fe,
plus V2O5 credit). Highlights of the PEA, which was based on the
Project's current 5.5Mt resource, include: US$106.5 million
post-tax Net Present Value ("NPV8%"); 317.8% post-tax Internal Rate
of Return ("IRR"); CAPEX totalling US$9.5m; and three-month payback
time (see announcement of 16 February 2021 for further
details).
Jangada is focused on maintaining the positive momentum behind
the Project and the net proceeds raised will provide sufficient
resources to fund ongoing work streams as part of a revised PEA
currently underway, which the Company believes has the potential to
further improve the Project's economics. The revised PEA is
expected to be completed in Q2 2021 and will incorporate the
results of the current ongoing drilling programme, which is focused
on expanding the Project's mineral resource base and the completion
of metallurgical testing, which will provide the basis for product
placement discussions with potential traders and off-takers.
Brian McMaster, Executive Chairman of Jangada, said: "We are
delighted to have received such strong support in completing this
placing, which further strengthens our confidence in the
Pitombeiras Vanadium Project. The recent PEA confirmed that
Pitombeiras is a project with very robust economics and remarkable
potential for further growth. These funds will allow us to continue
to demonstrate this during the first half of 2021 as we look to
complete the drilling programme at the Project, deliver upgraded
and expanded resources and complete the new metallurgical tests,
which will provide the basis for discussions with potential traders
and off-takers. The Company is now fully funded to complete the
next stages of its work programme. I look forward to providing
further updates as we make progress with these workstreams."
Issue of Broker Warrants
As part payment for Brandon Hill Capital's services in relation
to the Placing, it has been issued with 694,444 warrants to
subscribe for new Ordinary Shares, exercisable at the Placing
Price, for a period of three years.
Admission and Total Voting Rights
The Placing Shares will rank pari passu with the existing
ordinary shares of GBP0.0004 pence each of the Company ("Ordinary
Shares") and application for the admission to trading on AIM of
13,888,888 new Ordinary Shares will be made. Admission to trading
on AIM of the Placing Shares is anticipated to occur on 25 February
2021.
Following admission to trading on AIM of the Placing Shares, the
Company will have 256,002,032 Ordinary Shares in issue, each with
voting rights. Accordingly, 256,002,032 Ordinary Shares may be used
by shareholders as the denominator for the calculations which will
determine whether they are required to notify their interest in the
company, or any change to that interest, under the Financial
Conduct Authority's Disclosure and Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
**ENDS**
For further information please visit www.jangadamines.com or
contact:
Jangada Mines plc Brian McMaster (Chairman) info@jangadamines.com
Strand Hanson Limited James Spinney info@strandhanson.co.uk
(Nominated & Financial Ritchie Balmer
Adviser) Jack Botros
Brandon Hill Capital Jonathan Evans info@brandonhillcapital.com
(Broker) Oliver Stansfield
St Brides Partners Isabel de Salis info@stbridespartners.co.uk
Ltd Beth Melluish
(Financial PR)
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