(Alliance News) - Bluejay Mining PLC said Wednesday it intends to raise GBP11.5 million through a placing and share subscription, which will go towards further developing its projects in Greenland.
The miner will raise GBP11.5 million through the issue of 115 million shares at a price of 10 pence per share, reflecting a 3.1% discount to its closing price on Tuesday at 10.32p.
Shares in Bluejay Mining - which is headquartered in London - were down 0.2% at 10.30 pence on Wednesday.
The fundraise will be conducted in two phases: a firm placing raising GBP7.5 million through the issue of 75 million shares; and GBP4.0 million through a share subscription of 40 million shares by Greenlandic and Danish government investment funds, Greenland Venture AS and Vaekstfonden.
The subscription is conditional on shareholder approval at a general meeting scheduled for December 12.
Proceeds from the fundraise will go towards advancing the Dundas ilmenite project towards a mining licence grant, and the launch of maiden drilling campaigns at the Disko-Nuussuaq project and Langerluarsk project in 2020, both of which require government approval.
"We are delighted to have received strong support from two important Greenlandic and Danish Government backed institutions. This support demonstrates the mutual desire to grow the country's mineral resource industry and we hope that Bluejay will be that vanguard," said Chief Executive Officer Roderick Mcillree.
Following the issue, Bluejay Mining will have 970.0 million shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Bluejay (JAY)