TIDMJAY
RNS Number : 1209E
Bluejay Mining PLC
28 June 2023
28 June 2023
Placing and Operational Update
Bluejay Mining plc ('Bluejay' or the 'Company'), the AIM, FSE
listed and OTCQB traded exploration and development company with
projects in Greenland and Finland, is pleased to announce that it
has raised gross proceeds of GBP1.3 million through the placement
of 74,285,707 shares ("Placing Shares") to new and existing
shareholders, including our two largest shareholders, at a price of
1.75 pence per share (the "Placing").
The funds raised will be focussed on the Company's 100% owned
Hammaslahti copper-zinc-silver-gold ('Cu-Zn-Ag-Au') project
('Hammaslahti') in eastern Finland where the Company completed
Phase 1 of a diamond drilling programme last week.
Highlights
-- GBP1.3 million ($1.65 million) gross proceeds raised for the
further development at the Hammaslahti Cu-Zn-Ag-Au project and for
general corporate purposes.
o Recent drilling on the East-lode ('E-lode') ore body
mineralisation at Hammaslahti has encouragingly intersected
sulphide mineralisation in all holes, further work is planned on
the E-lode, as well as down-plunge extensions to previously mined
ore-lodes, to enable the delivery of a maiden Mineral Resource
Estimate ('MRE') for the ore bodies.
o Prospect of a further 1,000 metres ('m') of drilling to be
carried out in August 2023.
o The Hammaslahti Project has the potential to provide
meaningful value to shareholders in a short timeframe.
-- Discussions are progressing with two well capitalised
prospective investors from US and Nordic jurisdictions offering
complementary technical and financial capabilities to the Company.
However, there can be no certainty that any binding agreements will
be entered into with these investors.
-- Unseasonal and unexpected sea-ice conditions in the fjords
leading to the Kangerluarsuk zinc-lead-silver +/- copper-critical
metals ('Zn-Pb-Ag +/- Cu-Critical Metals') project
('Kangerluarsuk') presented significant operational and capital
risk to the Company. The Board of Directors have taken the decision
not to proceed with the planned 2023 maiden drilling programme and
associated fieldwork at Kangerluarsuk. The decision not to proceed
with the programme at Kangerluarsuk has resulted in lower capital
requirements.
Robert Edwards, Executive Chairman of Bluejay, stated:
"The historical Hammaslahti mine was previously operated between
1971 and 1986 and produced a total of seven million tonnes of
high-grade Cu-Zn-Ag-Au ore. This historical production, combined
with our previous exploration activities, gives us confidence that
Hammaslahti presents the potential to maximise shareholder value in
a short timeframe. In accordance with our new strategy, the funds
raised will be used to further the development of Hammaslahti, as
we seek to progress our 100% owned projects to maximise shareholder
value.
"The immediate use of these funds will go towards conducting
further diamond drilling at the project and will allow the Company
to deliver a maiden mineral resource estimate. We also plan to
finalise the assaying of cores from the drilling completed earlier
this month where all drill holes on the so-called E-lode ore body
intersected sulphide mineralisation. Hammaslahti offers a unique
opportunity to delineate other VMS style deposits, which are known
for their polymetallic nature and open high grades, which further
exhibit the project's potential.
"Kangerluarsuk, remains a high priority target for Bluejay,
however, due to unforeseen sea-ice conditions, we have been unable
to progress with our intended maiden drilling campaign. As soon as
it is feasible to do so, Bluejay will re-plan and resume its maiden
drilling campaign. We are fortunate enough to boast a portfolio of
promising projects, and it is because of this nature of the Company
that we are able to pivot to other value creating avenues, when
circumstances out of our control arise. We look forward to
providing further updates in due course."
Related Party Transaction
The Placing participation from Sand Grove Capital Management LLP
("Sand Grove") and M&G Investment Management Limited
("M&G") is considered a related party transaction for the
purposes of AIM Rule 13 of the AIM Rules for Companies. The
Directors independent of Sand Grove and M&G consider, having
consulted with SP Angel Corporate Finance LLP, the Company's
Nominated Adviser, that the Placing participation is fair and
reasonable in so far as Bluejay's shareholders are concerned.
Directors and Senior Management participation
Bluejay is currently in a close period that restricts Directors
and senior management trading in the Company's shares, and
therefore restricts them to participating until the release of the
full year 2022 results, which are expected to be released on or
before 30 June 2023. Subject to any regulatory requirements, the
Directors of the Company may participate in the future. If
required, further announcements will be made in relation to any
subscription by Directors and senior management in due course.
Fee Shares
571,429 shares have been issued to SP Angel at 1.75 pence per
share in lieu of GBP10,000 of fees ("Fee Shares").
Admission and Total Voting Rights
Application has been made for the 74,285,707 Placing Shares and
571,429 Fee Shares to be admitted to trading on the AIM market of
the London Stock Exchange ("Admission"). It is expected that
Admission will occur on or around 3 July 2023. The Placing Shares
will be credited as fully paid and rank pari passu with existing
ordinary shares of 0.01 pence each in the capital of the Company
("Ordinary Shares").
Following the issue of the Placing Shares, the total issued
share capital of the Company will consist of 1,134,170,794 Ordinary
Shares. The Company does not hold any Ordinary Shares in treasury.
Therefore, the total number of voting rights in the Company is
1,134,170,794 and this figure may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under
the FCA's Disclosure and Transparency Rules.
Prospective Strategic Investors
In February 2023, the Company entered a financing arrangement.
Management took the decision to reverse the financing following
feedback from shareholders, including the risk associated with
being able to draw future funds from the arrangement (see Bluejay
RNS dated: 25 April 2023 ).
Bluejay is also in advanced discussions with two strategic
entities with complimentary attributes which we believe will
strengthen both the financial and technical capabilities of the
business as we progress the Company's portfolio of exploration
projects as outlined in the recent Strategic Update (see Bluejay
RNS dated: 14 February 2023 ). The Company is hopeful that it can
successfully conclude one or both of these discussions. However,
there can be no certainty that any binding agreements will be
entered into with these investors.
2023 Field Season Update
Drilling at the Hammaslahti Project, Finland - Development of
the E-lode Discovery
The immediate use of funds from this fundraise will be used to
advance the Hammaslahti Project in eastern Finland, especially
building on the encouraging results from the recent drilled
near-mine E-lode discovery at the former Hammaslahti mine. The use
of funds will enable the delivery of a maiden MRE for the E-lode as
well as the down-plunge extensions to previously mined
ore-lodes.
The Company will finalise the work and assay of selected
mineralised intervals from the seven holes for a total of 1935.7m
of drill core from the E-lode mineralised ore body that were
intersected during Phase 1 of the Hammaslahti drill programme
earlier in May and June this year (see Bluejay RNS dated: 30 May
2023 ). Sulphide mineralisation was intersected in all of the seven
drilled holes.
A lithogeochemical and petrological study has been commissioned
by Dr Denis Schlatter EurGeol (Helvetica Exploration Services GmbH)
to better constrain controls on the mineralisation. Additionally,
there is the prospect for a further 1,000m of drilling to be
carried out in August.
The polymetallic mineralisation at the 100% owned Hammaslahti
Cu-Zn-Au-Ag project is interpreted to be a partially re-mobilised
volcanogenic massive sulphide ('VMS') type deposit. Bluejay's
licence area contains the historic Hammaslahti mine which was
operated by the Finnish state mining company, Outokumpu Oy from
1971 to 1986. The open-pit and underground mine produced a total of
7 million tonnes grading 1.16% Cu, 1.55% Zn, 0.59 grammes per tonne
('g/t') Au and 5.2 g /t Ag ( Geological Survey of Finland, 2023
).
Bluejay own 100% of the Hammaslahti Project through its wholly
owned subsidiary FinnAust Mining Finland Oy ('FinnAust'). The
Company's exploration efforts have so far mostly focused on
brownfields targets in the near-mine area. Former drill intersects
by the Company have confirmed that previously mined ore lode
mineralisation at Hammaslahti (namely, the Z-and S-lode ore bodies)
remain open down plunge to the South and also resulted in the
discovery of new mineralisation, the E-lode ore body in 2014 (see
FinnAust Mining RNS dated: 21 July 2014 ). The previously mined
N-lode ore body at Hammaslahti constitutes another potential target
for a down-plunge open ore body mineralisation. However, the N-lode
have not been tested by drilling by the Company yet.
The E-lode discovery hole (hole id. M424114-R325) returned 8.65m
grading 2.2% Cu, 2.0% Zn, 0.5 % Pb, 47.5 g/t Ag, and 0.5 g/t Au,
including 5.60m grading 3.2% Cu, 3.2% Zn, 81.1 g/t Ag, and 0.9 g/t
Au hosted in semi-massive to massive sulphides hosted close to the
contact between strongly hydrothermally altered metavolcanic
sediments and sulphidic black shales (see FinnAust Mining RNS
dated: 21 July 2014 ). The E-lode is located approximately 200m
east from underground infrastructure of the former Hammaslahti mine
and is comparable in grade and style of mineralisation to the
ore-lodes that were mined historically (see also Figure 1 in
Bluejay RNS dated: 30 May 2023 ).
Prior to the 2023 drilling programme completed in mid-June, the
E-lode has never been followed up on. With relative modest
activities on the Hammaslahti Project over the last decade the
recent Company Strategic Review (see Bluejay RNS dated: 14 February
2023 ) highlighted this project. This in combination with the
proven down-plunge extensions of the historical mine ore-lodes
provide Bluejay management with conviction that the near-mine
targets at Hammaslahti represents a clear opportunity that can be
advanced at modest cost.
The S-lode has been demonstrated in earlier drilling by Bluejay
to be open down-plunge to the south, beyond 500m depth, e.g., 15m
from 536m grading 3.1% Cu, 0.1% Zn, 14.4 g/t Ag and 0.8 g/t Au,
including 3.4m grading 11.5% Cu, 0.4% Zn, 53.4 g/t Ag and 3.0 g/t
Au.
Bluejay is focussing capital on the projects that can provide
the most value to the Company and its shareholders in the shortest
timeframe. Hammaslahti is a previously producing copper-zinc mine
in a low-risk jurisdiction, and Bluejay believes that there is
potential to expand the known orebodies and further structures.
Bluejay's exploration permits, totalling 39.3 square kilometres
('sq km'), cover the majority of the Hammaslahti-Tohmajärvi
Metallogenic Belt (the 'Belt'). The belt is considered permissive
for further polymetallic VMS deposits as supported by the presence
of high-grade mineralised outcrops and boulders within Bluejay's
licence areas south of the former mine, providing further upside to
the project. Fieldwork to progress new drill targets within the
wider Belt will progress alongside the planned drilling and
resource estimation work planned on the near-mine target.
Update on 2023 planned drill programme at the Kangerluarsuk
Project, Greenland
The Company has been making advanced preparations to commence a
5,000m maiden drilling and field campaign at its high potential
Kangerluarsuk Zn-Pb-Ag +/- Cu-Critical Metals Project for which the
logistical operation and preparation of the base camp
infrastructure was scheduled to begin mid-June. However unseasonal
and unexpected sea-ice in the fjords leading towards both the
Kangerluarsuk area and the former Black Angel Mine site (which was
to be used as the location for the base camp), prevented safe
access and unloading of the ship and barge that would be used to
deliver the heavy equipment, drill-rigs, consumables, and large
quantities of fuel required for the operation and drill
programme.
According to the public digital Ice Charts available from the
Ice Service under the Danish Metrological Institute for the last 14
years, this is the first time in the available records that such
dense sea-ice patterns have occurred at this time of year in the
fjords surrounding the Kangerluarsuk and Black Angel sites.
Even if, under these unseasonal conditions, access was to be
established with additional significant capital spend on vessels
capable of breaking the sea-ice there would remain a material risk
on the barge operation becoming ice-locked or a significantly
shortened higher risk campaign. The Board of Directors decided that
the capital and operational risk was too great and there are too
many uncertainties to proceed with the maiden drilling programme at
Kangerluarsuk this summer. Kangerluarsuk remains one of the high
priority assets for valuation creation for Bluejay shareholders and
the Company will re-plan and resume a maiden drilling programme as
soon as feasible.
Despite the decision not to proceed with the drilling programme
at Kangerluarsuk this year, the depth and quality of the Company's
multi-project portfolio, and the promising early results in
Finland, allow Bluejay to redirect resources into value-for-money
exploration campaigns at the Hammaslahti Project in Finland,
utilising the Company's project portfolio and priorities for value
creation.
Disko-Nuussuaq Project, Greenland and Joint Venture with KoBold
Metals
At the Disko-Nuussuaq nickel-copper-cobalt-platinum group
elements-gold ('Ni-Cu-Co-PGE-Au') project ('Disko'), the
geochemical samples, geophysical data and mapping data from the
exploration campaign (see Bluejay RNS dated: 10 October 2022 ) are
currently being integrated with existing data and interpreted by
KoBold Metals' ('KoBold') team utilising its artificial
intelligence (' AI ') platforms. More data was gathered than
originally expected which has prolonged the analysis time required.
The interpretation of the data will allow the Joint Venture ('JV')
to prioritise the ratification of mineralisation targets and will
form the basis of future work.
Under the terms of the JV, KoBold is required to spend $11.6
million on drill related expenditure or drill 15 pre-agreed drill
holes within the licence areas by 31 December 2024 (see Bluejay RNS
dated: 9 August 2021 ).
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018.
For further information please visit
http://www.bluejaymining.com or contact:
Kevin Sheil Bluejay Mining plc enquiry@bluejaymining.com
---------------------------- --------------------------
SP Angel Corporate Finance
LLP
Ewan Leggat / Adam (Nominated Adviser and
Cowl Broker) +44 (0) 20 3470 0470
---------------------------- --------------------------
Tim Blythe / Megan BlytheRay
Ray / Said Izagaren (Media Contact) +44 (0) 20 7138 3205
---------------------------- --------------------------
About Bluejay Mining plc
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 multiple projects in Greenland and Finland, Bluejay has now
secured four globally respected entities as partners on three of
its projects, and exploration expenditure of up to $37 million
contractually committed on three key projects, giving the Company
and its shareholders both portfolio and commodity diversification
in high quality jurisdictions.
Bluejay's Dundas Ilmenite Project in northwest Greenland is
fully permitted and undergoing further optimisation studies. The
Company has agreed a Master Distribution Agreement with a major
Asian conglomerate for up-to 340k tonnes per annum ('tpa') of its
designed 440ktpa annual output. The Company has also mandated a
major European bank to head the financing syndicate for Dundas.
Bluejay, through its wholly owned subsidiary Disko Exploration
Ltd., has signed a definitive Joint Venture Agreement with KoBold
Metals to guide exploration for new deposits rich in the critical
materials required for the green energy transition and electric
vehicles (The Disko-Nuussuaq nickel-copper-cobalt-PGE Project).
Disko Exploration Ltd holds two additional projects in Greenland -
the 692 sq km Kangerluarsuk zinc-lead- silver project, where
historical work has recovered grades of up to 45.4% zinc, 9.3% lead
and 596 g/t silver and where multiple large-scale drill targets
have been identified; and the 920 sq km Thunderstone project which
has the potential to host large-scale base metal and gold
deposits.
In Finland, Bluejay currently holds three large scale
multi-metal projects through its wholly owned subsidiary FinnAust
Mining Finland Oy. The Company has a Joint Venture Agreement with a
mining major at its Enonkoski nickel-copper-cobalt Project in East
Finland which has seen continued exploration and drilling since
June 2021. Bluejay's drill ready Hammaslahti
copper-zinc-gold-silver project hosts high-grade VMS mineralisation
and extensions of historical ore lodes have been proven. The drill
ready Outokumpu copper-nickel-cobalt-zinc-gold-silver project is
located in a prolific geological belt that hosts several high-grade
former mines. Bluejay has also signed a conditional agreement for a
partial divestment in a fourth Finnish project.
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