A Brazilian mining project that claims to be one of the “best undeveloped platinum projects in the western hemisphere” is to raise £2m by listing on London’s junior Aim market.
Jangada Mines will use the cash to fast-track a feasibility study and pre-production at the Pedra Branca mine in Ceará province, which was formerly owned by Anglo American Platinum (Amplats) and Solitario Exploration.
The deposit has a resource of 1m ounces of platinum and palladium, which are used in catalytic converters for cars and in jewellery. These platinum group metals (PGMs) are rarely found outside South Africa, and the project is thought to be the only one of its kind in South America.
Brian McMaster, Jangada’s chairman, said the company could capitalise on the recent unrest in the South African mining industry, which has been rocked by onerous new government regulations and soaring costs.
“Supply out of South Africa is only going to go one way,” Mr McMaster said. “There is a supply deficit in the market so there is a need for more platinum.”
Investors would be buying into $35m-worth of work already carried out by Amplats over a number of years, Mr McMaster said. “This is a very cheap entry in a very well-developed project.”