Business
Proposed Disposal of the Pedra Branca Project
Proposed Disposal of the Pedra Branca Project.
About this update from Jangada Mines Plc
[{"type":"text","content":"\n \nRNS Number : 2226A Jangada Mines PLC 28 May 2019 \n\nJangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining\n28 May 2019\n Jangada Mines plc ('Jangada' or the 'Company')\n \nProposed Disposal of the Pedra Branca Project\n \nJangada Mines plc, a natural resources company developing the Pedra Branca project, South America's largest and most advanced platinum group metals ('PGM') and nickel project (\"Pedra Branca\"), and the Ptombeiras West vanadium project (\"Ptombeiras\"), in north eastern Brazil, is pleased to announce that it has entered into a binding letter agreement (the \"Agreement\") with a TSX-V listed entity, ValOre Metals Corp. (\"ValOre\"), for the sale, subject to satisfaction of a number of conditions (set out further below), of 100% of Pedra Branca do Brasil Mineracao Ltda., the entity that holds Pedra Branca, to ValOre (the \"Proposed Transaction\").\n \nAs part of the Proposed Transaction, the Ptombeiras project remains 100% owned by Jangada.\n \nThe Proposed Transaction\nThe Agreement sets out that the following consideration is payable to Jangada pursuant to the Proposed Transaction: \n \na) issuance and allotment of 25,000,000 ValOre common shares (\"Consideration Shares\") on the date of closing of the Proposed Transaction; and\nb) cash payments to Jangada in the aggregate of C$3,000,000, as follows: \n(i) an exclusivity payment of C$250,000, which has been received by the Company. C$200,000 of this amount is refundable only in the event that Jangada breaches the exclusivity covenant set out in the Agreement, which runs for the next 100 days;\n(ii) C$750,000 payable on closing of the Proposed Transaction;\n(iii) C$1,000,000 on, or before, 3 months after the closing of the Proposed Transaction; and\n(iv) C$1,000,000 on, or before, 6 months after the closing of the Proposed Transaction.\n \nAs such, the total consideration payable to Jangada, based on the closing price of a ValOre common share on 23 ...