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Natural resources company Jangada Mines entered into a binding letter agreement with a ValOre to sell its platinum group metals and nickel project in a cash and shares deal worth £4.1m.
The sale comes as Jangada had found there to be limited support in the UK financial markets for financing a platinum group metals project.
'(T)he Proposed Transaction which will see ValOre raising finance to continue the development of Pedra Branca and allow the Company to maintain an interest in a project that will be funded through to its next stage of development,' said Jangada.
Under the agreement, ValOre would issue and allot of 25m of its shares to Jangada on the date of closing of the proposed transaction; and pay C$3m in cash, of which an exclusivity payment of C$0.25m had been received by the company.
Following the completion of the deal, Jandaga would hold a 33% state in ValOre.
The proposed transaction provided for an exclusivity period of 100 days for completion of the various conditions. Until these conditions precedent have been satisfied in full, shareholders should be aware there is no guarantee the proposed transaction would proceed, the company said.
At 9:39am: (LON:JAN) Jangada Mines Plc Ord Gbp0.0004 share price was -0.63p at 1.48p