Shares in Jangada Mines Plc (LON:JAN) booked a 10% premium today after debuting at 5p per share in on the AIM market in London.
The company raised £2.25 mln via UK broker Beaufort as part of the admission process, issuing 45 mln new shares.
Following first dealings the market capitalisation rose to just over £10mln, with the stock changing hands at 5.5p each in afternoon trading.
The money raised will be used to progress the company’s advanced open pit platinum project in Brazil through to the pre-feasibility stage.
At this point it is envisaged that the mine will produce around 30,000 ounces of platinum group metals per year at low cost.
In a note to clients, Beaufort initiated coverage on Jangada with a ‘speculative buy’ stance and a price target of 9.6p
The broker's analysts said: “Pedra Branca is an advanced stage exploration project that has seen more than US$35m in exploration expenditures by previous explorers. As such, Pedra Branca is the largest and most advanced PGM project in South America.
“More importantly, the project has mining licences in place for potential near-term production with significant scalability due to its resource expansion opportunities.”
-- Adds broker comment, updates share price --