REG - Jangada Mines PLC - Investee Company Update: Fodere Titanium

Jangada MinesAnnouncement

18/12/2023 07:00

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RNS Number : 0679X  Jangada Mines PLC  18 December 2023

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

18 December 2023

Jangada Mines plc ('Jangada' or 'the Company')

 

Investee Company Update: Fodere Titanium

 

Commercialising technology that extracts critical minerals from mine tailings
& primary feedstocks

 

Jangada Mines plc, a natural resources development company with interests in
Brazil and elsewhere, is pleased to announce an update on critical mineral
extraction technology company, Fodere Titanium Limited ('Fodere'), in which it
holds a 7.7% interest.

 

Highlights on the Fodere developments:

 

·    Groundbreaking extractive technology proven at pilot level in Zambia.

·    Technology enables the recovery of 99% of minerals from various
tailings feedstocks in a single process, significantly reducing operational
costs and benefitting the environment.

·    Engineering design of a pre-commercial 7 tonne per day ('tpd') plant
in South Africa to confirm scalability of the technology has commenced, with
commissioning targeted for mid-2024.

·    Plans for full commercial plant in place and support from an African
focused development bank, which is intending to finance the initial commercial
plant with an investment exceeding US$70 million.

·    Excellent economic potential for a plant to be constructed at
Jangada's Pitombeiras vanadium titanomagnetite project in Brazil
('Pitombeiras').

·    Early testing of Pitombeiras ore delivered high recovery levels
including 86.73% TiO2, 91.19% Fe2O3, and 95.88% V2O5 (see RNS dated 13 April
2023).

·    25 tonnes of material from Pitombeiras awaiting shipment to South
Africa to be tested in the pre-commercial plant.

·    Jangada maintains the exclusive rights for the technology in South
America.

 

Brian McMaster, Executive Chairman of Jangada said, "Fodere continues to make
excellent progress as it looks to advance its groundbreaking technology that
extracts critical minerals from mining waste dumps and primary materials,
specifically vanadium and titanium. It has the potential to extract high-grade
titanium dioxide and vanadium pentoxide from our own Pitombeiras vanadium
titanomagnetite project in Brazil and greatly improve the already robust
economics of the Project. With the exclusive rights to South America, it also
provides us with potential for additional revenue through other opportunities,
particularly waste dumps. We have an excellent network in South America which
we aim to utilise to enact this process.

 

"I look forward to updating investors regularly on all our projects and
acquisition strategy as we look to build long term value for shareholders."

 

Operational Overview from John Omitogun, Director of Fodere:

 

"We are pleased to provide you with an update on the progress Fodere is making
as we look to execute our strategy. Our focus remains to delivering our first
commercial critical minerals processing plant utilising our groundbreaking
proven technology, which, as you know, extracts critical minerals, such as
titanium & vanadium from primary ores, along with tailings stockpiles.
This, in essence, turns environmental liabilities into revenue generating
assets.

 

"Over the past months, we have been working to implement technical
enhancements to ensure the technology is commercially scalable. Ahead of the
next investment tranche and in conjunction with our engineering team, we have
analysed the design specifications and identified areas to optimise the
process and improve the economics. While these modifications necessitated
extra time and resources, we are confident that they will prove to be a
worthwhile investment.

 

"Our previous small-scale pilot plant operations have demonstrated the success
of our technology. In light of recent optimisations and the need to thoroughly
examine technical intricacies associated with scaling, we've made the
strategic decision to construct an intermediate-sized pre-commercial facility
in South Africa, strategically located near the 12 million tonnes of feedstock
which we currently control. The establishment of this facility is essential
for gaining a comprehensive understanding of all intricacies through the
operation of a pre-commercial plant before progressing to a larger
industrial-scale commercial facility.

 

"The pre-commercial plant serves a dual purpose. Firstly, it will provide
valuable insights that significantly reduce uncertainties related to scaling
up, paving the way for the construction of a much larger commercial plant than
initially planned. Secondly, it will serve as a testing ground for a diverse
range of feedstocks, offering opportunities for training large plant operators
and potential future licensees. It is important to emphasise that we maintain
unwavering support from an African focused development bank, which is
intending to finance the initial commercial plant in South Africa with an
investment exceeding US$70 million.

 

"We are also pleased to announce that detailed engineering is underway for the
pre-commercial plant. This facility will have a fully integrated
semi-continuous design, capable of handling 7 tons per day of feedstock.
Costing US$2.5 million, this pre-commercial-sized plant is on track to be
commissioned and fully operational in 2024. It marks a pivotal milestone in
our journey towards realising our objectives of achieving commercial viability
and profitability.

 

"We would like to emphasise the effectiveness of our technology in today's
world. As a disruptive sustainable solution, it enables the extraction of 99%
of minerals from various feedstocks through a single process, all while
adhering to a zero-waste policy. This aligns well with the preferences of
potential end users. The growing emphasis on Environmental, Social, and
Governance (ESG) considerations, coupled with the increasing demand for
environmental solutions to manage tailings and process primary materials,
especially with regard to minimising water and power consumption, has led to a
heightened interest in our technology.

 

"As we progress with our initiatives, it is essential to initiate a capital
raising effort to address the financial shortfall for the pre-commercial
plant. The board is proactively involved in discussions with potential
investors to secure the necessary capital."

 

Further Information:

Jangada's original investment in Fodere was made as part of the Board's
strategy to utilise its strong treasury and expand its exposure to commodities
and technologies focussed on net zero strategies in the natural resources
arena. The Company also has a 10% interest in Blencowe Resources, which
provides exposure to graphite, the largest commodity within an EV battery.

 

Fodere has spent seven years developing its technology and invested in excess
of US$9.2m; with the latest funding round implying a valuation post money of
US$30m. Its 11-strong technical team, led by co-inventors Dr Yotamu Hara and
Dr Stephen Parirenyatwa, have years of collective experience in engineering,
design, metals processing, project management, and operations providing them
with the capability to refine and commercialise this groundbreaking
technology.

 

Fodere's pilot-plant proven technology can extract critical minerals,
including titanium and vanadium, from a variety of mineral and industrial
waste feedstocks to turn environmental liabilities into revenue generating
assets. This unique, zero-waste solution recycles 80% of all water and
operates at under 850 degrees centigrade, which is significantly lower than
traditional processing plants that are typically at 1,100 degrees centigrade.
With a less complex flowsheet, the process can deliver increased energy
efficiencies and provide lower capital and operating expenditure compared to
other conventional processing methods.

 

The goal of the pre-commercial plant is to provide scaled up engineering data
that will facilitate the final design and costing for the first full-scale
commercial treatment plant. In the future, it will become Fodere's main
R&D facility allowing it to evaluate a wide variety of feedstocks while
also providing training capabilities for large plant operators and any
potential future licensees.

 

On expected success of the pre-commercial plant, Fodere aims to commence the
engineering of Phase 1 of its full-scale 720,000 tonne per annum ("tpa") plant
in Q4 2024 located in the Witbank region of South Africa. Witbank's
Environmental Impact Assessment was approved in 2022 and +25 years of titanium
and vanadium rich feedstock has been secured. Letters of Interest have also
been received from two major pigment producers for offtake agreements.

 

The plant at Witbank will be constructed in two phases. Phase 1 will have a
120,000 tpa processing capacity. The 12 million tonnes of feedstock already
secured is estimated to garner annual production of 36,000 tonnes of titanium
dioxide, 1,000 tonnes of vanadium pentoxide, 14,000 tonnes of alumina and
12,000 tonnes of magnesium. Ratios of product to input slag are very
favourable with breakeven at 40% of forecast capacity translating into a
low-cost, economically viable operation with a rapid payback.

 

Phase 2 will have a targeted processing capacity of 600,000 tpa, five times
more feedstock per annum than Phase 1. Depending on market demand, annual
production is estimated to be 192,000 tonnes of Titanium Dioxide, 5,000 tonnes
Vanadium Pentoxide, 52,000 tonnes of Magnesium and 61,000 tonnes of Alumina.
Preliminary funding discussions have commenced with export credit agencies
that understand the environmental and financial benefits of the technology, as
well as the abovementioned African focused development bank.  Funding
discussions on the commercial plant are subject to, inter alia, definitive
documentation being agreed.

 

Jangada aims to utilise Fodere's technology to improve the economic potential
of Pitombeiras. Encouragingly and as reported, initial test work on five
samples delivered high recovery levels including 86.73% TiO2, 91.19% Fe2O3,
and 95.88% V2O5 (see RNS dated 13 April 2023).

 

Material totalling 25 tonnes from Pitombeiras is awaiting shipment to be
tested in the pre-commercial plant. This will enable the team to finalise a
commercial flowsheet and provide in-depth economics for a Preliminary Economic
Assessment focussed on the extraction of TiO2, V2O5 and iron. The material is
awaiting permits for it to be shipped from Brazil to South Africa; Fodere is
currently finalising the relevant permits.

 

Beyond the potential transformative benefits to Pitombeiras, Jangada has the
rights to the technology in South America where it envisages it can be applied
to waste dumps returning to Fodere's initial strategy to turn mining
liabilities into assets. The Jangada team has wider experience of operating in
South America and identifying assets that can be developed. Board member Luis
Azevedo identified both the Pitombeiras asset as well as the Luanga PGM+Au+Ni
Project for Bravo Mining Corp (TSX:BRVO).

 

**ENDS**

 

For further information please visit www.jangadamines.com
(http://www.jangadamines.com/)  or contact:

 

 Jangada Mines plc                     Brian McMaster    Tel: +44 (0) 20 7317 6629
 Strand Hanson Limited                 Ritchie Balmer    Tel: +44 (0)20 7409 3494

 (Nominated & Financial Adviser)       James Spinney

 Tavira Securities Limited             Jonathan Evans    Tel: +44 (0)20 7100 5100

 (Broker)

 St Brides Partners Ltd                Ana Ribeiro       jangada@stbridespartners.co.uk

 (Financial PR)                        Isabel de Salis

 

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