Last checked at 22 Jul 2020 07:00
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining
22 July 2020
Bluejay Mining plc ('Bluejay' or the 'Company')
Conditional Agreement Extension and Increase for up to 300ktpa of Dundas Ilmenite
Bluejay Mining plc, the AIM and FSE listed company with projects in Greenland and Finland, is pleased to provide an update on its offtake negotiations for the Dundas Ilmenite Project ('Dundas' or the 'Project') in Greenland announced on 14 April 2020 ('MOU').
Highlights
· Up to a 50% increase in potential off-take amount of 250-300ktpa from the 200tkpa of Dundas ilmenite
· The MOU provides for a potential off-take of up to 70% of total annual output at Dundas
· A three-month extension to the MOU in order to negotiate a definitive distribution agreement
Background
On the 14 April, 2020 Bluejay announced the signing of a memorandum of understanding with a multinational commodity trading firm who are also a major ilmenite market participant. We are pleased to announce that the parties have agreed to extend both the size of the proposed offtake from Dundas, the Company's flagship development in Greenland by up to 50% from 200ktpa to up to 250-300ktpa and extend the agreement by three months to 31 October 2020 to allow time for a definitive purchase agreement to be completed. The multinational trading firm have also indicated a willingness to participate in project financing for Dundas, if feasible. Dundas is currently being assessed for a mining licence by the Greenland government with a decision expected later this year. Shareholders should note that there is no guarantee that the definitive purchase agreement or project financing for Dundas will be completed.
The parties have agreed to potentially increase the proposed contract size to up to 300ktpa, representing up to a 50% increase in potential offtake and representing up to approximately 70% of the total proposed annual output of Dundas.
The Company will now move to finalise the last remaining 140-190ktpa output to interested third parties with a view to obtaining off-take agreements for all of the total annual scheduled production potential from Dundas.
Bluejay CEO, Roderick McIllree said: "The extended agreement is an exciting step in the development of Dundas. With the current optimisation study delivering some positive results and the Mining Licence application now in the system and advancing well, we look forward to updating the market in due course on these and other developments."
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.
**ENDS**
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 |
Soltan Tagiev | SP Angel Corporate Finance LLP (Nominated Adviser) | +44 (0) 20 3470 0470 |
Andrew Chubb | Hannam & Partners (Advisory) LLP | +44 (0) 20 7907 8500 |
Charlotte Page | St Brides Partners Ltd | +44 (0) 20 7236 1177 |
Cosima Akerman | St Brides Partners Ltd | +44 (0) 20 7236 1177 |
Notes
Bluejay is dual listed on the London AIM market and Frankfurt Stock Exchange 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 JORC Compliant Resource 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 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.
The Company also has a 100% interest in a portfolio of copper, zinc and nickel projects in Finland. This multi-commodity portfolio has been restructured to be cost-sustainable whilst determining the best plan for future development.