Joint-Venture & Earn-In Agreement with Rio Tinto Mining and Exploration Ltd for up to US$20 million at Enonkoski Project Finl...
10 Noviembre 2020 - 7:00AM
InvestorsHub NewsWire
Bluejay Mining
plc
(‘Bluejay’ or the
‘Company’)
Joint-Venture & Earn-In Agreement with
Rio Tinto Mining and Exploration Ltd for up to US$20 million at
Enonkoski Project Finland
November 10, 2020 -- InvestorsHub NewsWire -- Bluejay Mining
plc, the AIM, OTCQB and FSE listed exploration and development
company with projects in Greenland and Finland, is pleased to
announce that it has entered into an Option to Joint Venture
Agreement (the “Agreement”) with Rio Tinto Mining and Exploration
Limited (“Rio Tinto”) on its Enonkoski nickel project (“Enonkoski”)
where Rio Tinto may acquire up to a 75% interest in Enonkoski by
completing US$20.0 million worth of expenditure.
Overview of transaction
Terms of the Agreement - Rio Tinto may acquire
up to a 75% interest, in stages, in the Enonkoski Project by sole
funding US$20.0 million in project expenditures or cash equivalent
payments over three stages:
- Stage One – Rio Tinto can move to 51% ownership by spending
US$5.0 million by November 2023. Of this $5.0 million, $0.4 million
is expected to be spent by 30 March 2021
- Stage Two – 65% ownership for further expenditure of US$5.0
million by November 2025
- Stage Three – 75% ownership for further expenditure of US$10.0
million by November 2029
- Beyond Stage Three, each party shall fund its respective
75%:25% share of project expenditure or be diluted
Shareholders should note that there is no guarantee that Rio
Tinto will exercise its option to enter into a joint venture with
the Company or that any project expenditure will be provided for
Enonkoski or any cash payments made to Bluejay. Further
announcements concerning the status of the Agreement will be made
by the Company in due course.
Rod McIllree, CEO of Bluejay Mining said:
“We are delighted to have signed this Agreement with Rio Tinto
and look forward to a successful partnership as we jointly assess
the Enonkoski nickel belt. This belt has demonstrable nickel
occurrences and past production and it’s a testament to the project
that we have attracted a blue-chip miner at
Enonkoski.
"At Bluejay and FinnAust, our wholly owned Finnish
subsidiary, we have a strategy of discover, develop, deliver, and
we have always maintained that our portfolio is of exceptional
quality and value, derived through our exploration expertise. We
have been transparent in communicating the need for partners to aid
us in moving through and beyond the development phase with our
larger projects, and this is something that is continuing across
our portfolio. Today is therefore particularly pleasing as this
Agreement demonstrates our ability to deliver on our strategy,
partner with major mining companies, and add significant value for
shareholders.
“We have worked hard to maintain the integrity of our
projects over the last few years and now are set to reap the
benefits of this strategy as the market outlook brightens
significantly for both industrial and battery metals. In Finland,
the Company has significant licence areas on two additional
high-quality ex-state-owned historical mine belts, and we will
update the market on those projects in due course. Additionally, we
are continuing to progress our partnerships and work programmes
across our broader base metal portfolio in
Greenland.
“We look forward to being in a position to follow-up this
transaction with others across both our Finnish and Greenlandic
portfolio in due course.”
Overview of Bluejay in Finland
Bluejay’s wholly owned subsidiary FinnAust Mining Finland Oy
(‘FinnAust’) is currently one of the largest licence holders in
East Finland. It is the current 100% owner of a range of brownfield
exploration licences that generally surround historical mines
including the Hammaslahti copper mine, the Outokumpu copper mines
and the Enonkoski nickel belt which hosts the Enonkoski
Project.
The Enonkoski Project
Enonkoski covers more than 2,300 hectares over mafic -
ultramafic rocks between and along more than 15km of strike from
the historical Enonkoski and Hälvälä mines operated by Finnish
state-owned mining company Outokumpu Oy. The area is prospective
for nickel, copper, cobalt and Platinum Group Elements. ("PGE").
The Enonkoski mine previously produced 6.7 million tonnes at an
average grade of 0.8% nickel between 1984 and 1994 with historic
intercepts of the massive ore in the mine including 32.90m @ 4.09%
Nickel, 0.56% Copper, 0.17% Cobalt and 19.70m @ 6.12% Nickel, 1.94%
Copper, 0.29% Cobalt.
Market Abuse Regulation (MAR)
Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For
further information please visit http://www.bluejaymining.com
or
contact:
Roderick McIllree
|
Bluejay Mining plc
|
+44 (0) 20 7907 9326
|
Kevin Sheil
|
Bluejay Mining plc
|
+44 (0) 20 7907 9326
|
Ewan Leggat
|
SP Angel Corporate Finance LLP
(Nominated Adviser)
|
+44 (0) 20 3470 0470
|
Adam Cowl
|
SP Angel Corporate Finance LLP
(Nominated Adviser)
|
+44 (0) 20 3470 0470
|
Andrew Chubb
|
Hannam & Partners (Advisory) LLP
|
+44 (0) 20 7907 8500
|
Tim Blythe
|
Blytheweigh
|
+44 (0) 20 7138 3205
|
Megan Ray
|
Blytheweigh
|
+44 (0) 20 7138 3205
|
Notes
Bluejay is listed
on the London AIM market and Frankfurt Stock Exchange and its
shares also trade on the OTCQB Market in the US. With projects in
Greenland and Finland, its most advanced project is the Dundas
Ilmenite Project in Greenland, which is being developed towards
production in the near term. The Dundas Ilmenite Project has
been proven to be the highest-grade mineral sand ilmenite project
globally, with a Mineral Resource reported in accordance with the
JORC Code of 117 million tonnes at 6.1% ilmenite and a maiden
offshore Exploration Target of between 300Mt and 530Mt of ilmenite
at an average expected grade range of 0.4 - 4.8% ilmenite
in-situ.
The Company's strategy is focused on securing an
offtake partner and commencing commercial production at Dundas in
the near term in order to create a company capable of self-funding
exploration on its current projects and future
acquisitions.
Bluejay holds
three additional projects in Greenland - the 2,897sq km
Disko-Nuussuaq ('Disko') Magmatic Massive Sulphide
nickel-copper-cobalt-platinum group element-gold project
('Ni-Cu-Co-PGE-Au'), which has shown its potential to host
mineralisation similar to the world's largest nickel-copper mining
district at Noril’sk-Talnakh, northern Russia; the 692sq km
Kangerluarsuk zinc-lead- silver project ('Kangerluarsuk'), where
historical work has recovered grades of 41% zinc, 9.3% lead and 596
g/t silver and identified four large-scale drill ready targets; and
the 2,025 sq km Thunderstone project which has the potential to
host large-scale base metal and gold
deposits.
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