From Blue jays board22 Nov 2019 12:32
Cool Jay
Look. This is silly. At a shade over 10p, the share price of Bluejay Mining (JAY) has eased slightly since news on Wednesday of an £11.5m fund-raising at 10p. Read it carefully and it is packed with gifts and messages to shareholders, signals that Bluejay is becoming a very big deal in Greenland just as the world is waking up to realise that the mineral riches of Greenland are a very big deal indeed.
The practical stuff first. Raising £11.5m means that Bluejay is not going to run out of money. There is to be £7.5m from a firm placing at 10p among existing and new institutional investors known to the board, with £4m to follow at 10p from two government investors, Greenland Ventures and Vaekstfonden (the Danish Growth Fund). Cash was running low at Bluejay, and had looked as if it could run out in the first half of 2020. Though the company has long been relaxed about it, the new money should remove market concerns.
Bluejay says the funds will go towards continuing to advance the Greenlandic resource projects, including the Dundas ilmenite opportunity, the maiden drilling campaigns at the Disko and the Kangerluarsuk polymetal projects, and to reviewing other potential high value prospects.
At this point it is probably useful to go back to my report of November 11 ‘Coming Up Trumps’. That set out the background to these projects. And let me emphasise for any who are still worrying over the detail that the GEUS survey estimating 17bn tonnes of ilmenite in the area which contains Dundas really does mean 17bn tonnes of ilmenite which sells for in the region of $200 tonne.
Whatever – we have established that Bluejay already has three massively valuable mineral extraction projects in Greenland, and is looking for more. This week’s fund-raising confirms that chief executive Rod McIllree and his board have established Jay as the leading operator in this minerals-rich land, one which has been under-explored because of the climate conditions, but which now has increasingly accommodating weather, a stable political system, and an administration which is anxious to cultivate sensible industry for their 59,000 citizens.
The Greenland and Danish governments do not normally invest in mining companies (one representative will join the board of Dundas, not the Bluejay top company), but it is clear they recognize Jay as something special. McIllree is delighted by the support, saying it shows the mutual desire to grow the mineral resource industry, and that he hopes Bluejay will be the vanguard.
His words are backed by the chief executive of Greenland Ventures, who says they consider Bluejay to be a leader in Greenland’s emerging mining sector, were greatly impressed by the team and are looking forward to supporting their future progress. The chief executive of the Danish Growth Fund talks about the advanced Dundas project and wider portfolio of projects in the development pipeline, attracting attention from major international mining com
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