LONDON: Jangada Mines plc announced Monday it has signed non-binding heads of terms to acquire an initial 33.3% stake in MTGOLD MINERAÇÃO LTDA, owner of Brazil’s Paranaíta Gold Project, with an option to increase its interest to 50.1% and secure management rights.
The Paranaíta project is located in the historically productive Alta Floresta–Juruena Gold Province and spans 7,211 hectares. Jangada has been granted a 60-day period for due diligence before executing definitive documentation.
To support the proposed acquisition, Jangada raised £800,000 through a placing of 133.3 million new ordinary shares at 0.6 pence each, arranged by Tavira Financial Ltd. The placement includes warrants exercisable at 1 pence over two years. Company directors also agreed to convert £350,000 of accrued fees into equity at the placing price.
The consideration for the initial stake includes £1 million in new shares and £250,000 in cash, with an additional £500,000 in shares available to raise Jangada’s holding to 50.1%, subject to future valuation metrics. All vendor-issued shares will be locked up for 12 months.
MTgold has invested over $2 million in exploration, which includes diamond drilling results showing up to 18.81 grams per tonne of gold. The company estimates a CBRR-compliant resource of roughly 210,000 ounces at 3.165 g/t gold, expected to be converted to JORC standards.
Executive Chairman Brian McMaster said the project represents a strategic move into a high-potential district. “We believe it hosts the hallmarks of a major gold system,” he said. “There has never been a better time to advance a high-quality project in a politically stable, mining-friendly region.”