Jangada Mines PLC entered into a binding agreement to sell the Pedra Branca platinum group metals project in Brazil to ValOre Metals Corp. in a deal valued at about £4.1 million.
The company said May 28 that it made the decision because it could not secure sufficient financial support for the project in the U.K. financial markets.
"The support that Jangada has experienced is diametrically opposite to both the independent experts' value of the underlying assets and the level of support given to projects with similar asset suites on other bourses," the company said.
ValOre will pay C$3 million cash and issue 25 million shares, giving Jangada a 33% stake in ValOre and the right to nominate up to two directors.
Jangada will use the funds to focus on developing its Ptombeiras West vanadium project in northeastern Brazil.
The company plans to conduct further drilling and metallurgical work at Ptombeiras in the near term and complete an ongoing National Instrument 43-101-compliant competent person's report in the third quarter.
In late January, Jangada outlined a 117% increase in the JORC 2012-compliant resource at Pedra Branca to 74.8 million tonnes at 1.31 g/t palladium equivalent.