Jangada Mines’, a natural resources company developing South America’s largest and most advanced PGM project, ordinary shares commenced trading on AIM last Thursday under the ticker JAN. As part of the Admission process, the company has raised £2.25 million, before expenses.
The majority of the net proceeds of the fundraising will be used to progress minor additional resource and reserve drilling, a bulk metallurgy test study, and a scoping study to determine operation parameters and likely financial model at the company’s Pedra Branca PGM project in Brazil. The project, previously owned by Anglo American Platinum, has benefited from extensive historical exploration and development expenditure to the tune of some $35 million.
Subject to raising significant additional funding, the Directors intend to work towards the commencement of trial mining and then commercial production at an initial rate of 30,000 oz/y within 12-18 months following Admission.
- Focused on advancing the Pedra Branca PGM project in Brazil and establishing a low cost, low capex open pit operation
- JORC (2012) Compliant Resource of 23 Mt at 1.3 g/t containing ~1 Moz PGM + Au mineralisation from surface
- Previous owners have spent in excess of $35 million developing the project, with all data and core owned and catalogued
- Subject to significant additional funding, clear path to shallow, open pit production
- Short term target production of 30,000 oz/y within 12-18 months
- Three existing mining licences cover about 52% of the current resource; 44 additional licences cover 55,000 ha
- Exploration potential remains open for PGM with significant upside potential for high grade nickel, copper, chrome, rhodium, gold & vanadium
- Strong PGM market fundamentals for low cost producers
- Management with extensive, proven track record and project experience
- COO Heinrich Müller managed the Pedra Branca PGM project for global major Anglo American Platinum
Brian McMaster, Executive Chairman of Jangada said, “As the largest and most advanced PGM project in South America, Pedra Branca is a unique opportunity. Our extensive understanding of the project and the region, given the historical work undertaken in tandem with key fundamentals including its location in a stable country with an established mining code, the simple low-cost processing operation planned and rapid route to production, all point towards an exceptional PGM opportunity.
“Jangada intends to hit the ground running. We have an exciting time ahead and we look forward to updating Shareholders on our progress as we implement our development plan for the project.”