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Jangada Mines PLC on Monday said it has signed heads of terms to acquire a 33% stake in Brazil-based MTGold Mineracao Ltda, giving it an entry into the Paranaita Gold project with an option to increase its interest to 50.1% and secure management rights. Shares in the company dropped 36% to 0.65 pence in London on Monday morning. The natural resources development company with interests in Brazil, said the deal will give it exposure to the Alta Floresta-Juruena Gold province, a prolific Brazilian gold region with an estimated 7 to 10 million ounces of historic production. To fund the transaction and accelerate exploration, Jangada has raised £800,000 through a placing of 133.3 million new shares at 0.6 pence each, with accompanying warrants exercisable at 1 pence. The company will also convert £350,000 of director fees into equity at the placing price. Under the proposed terms, the acquisition price for the initial 33.3% stake in MTGold will comprise £1 million in new Jangada shares, plus £250,000 in cash. A further £500,000 in shares may be issued to increase Jangada’s interest to 50.1%. MTGold wholly owns the 7,211-hectare Paranaita project, which has already reported an internally estimated resource of 210,000 ounces of gold at an average grade of 3.17 grams per tonne, based on Brazil’s CBRR code. Jangada believes this estimate can be quickly upgraded to JORC standards and expanded through further exploration. Chair Brian McMaster called the acquisition a ‘transformative’ move into a ‘high-quality gold project in a politically stable, mining-friendly region,’ adding that historic work had already revealed 15 high-grade gold occurrences along an 8-kilometre corridor. A fully funded exploration programme is expected to start in the third quarter of 2025, including infill drilling, geophysics, metallurgical testing, and a preliminary economic assessment. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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