Jangada Mines PLC (AIM:JAN) shares climbed in Friday's trade, after the company announced the sale of its holding in Blencowe Resources and said it would focus on its gold strategy.
The company will now prioritise the Paranaíta gold project in Brazil. It added that a recent fundraising of £800,000, and proceeds from the Blencowe sale, has positioned the company to accelerate trenching and exploration activities.
"We see exceptional value uplift potential in Paranaíta, which is now our primary focus," said Jangada chief executive Paulo Misk.
"Accordingly, selling our Blencowe holding allows all our capital to be focused on delivering our development objectives in a project where we maintain management control."
At Paranaíta, the aim is to deliver a preliminary economic assessment for an open-pit operation targeting about 20,000 ounces of gold annually.
Drilling will focus on upgrading Paranaíta’s current 210,000 ounce gold resource, targeting an uplift of around 350,000 ounces.
Misk added: "These are exciting times for Jangada, and I look forward to providing further updates on our activities towards building a major, Brazil-focused gold producer and creating long-term value for all stakeholders."
In London, Jangada shares were up 10% changing hands at 0.99p.