Bluejay Mining reached an agreement with Metals One for the sale of two of its mining projects in Finland, in exchange for a combination of cash and shares, for a total of £4mn ($5.5mn).
Bluejay said in a statement to the London Stock Exchange that through the conditional agreement signed by both companies, Metals One, a battery metals mining company, became the owner of Bluejay’s nickel, zinc, copper, and cobalt projects in Paltamo and Rautvaara, Finland.
Under the agreement, Metals One will pay £25,000 within the first five days after the contract is signed, an additional £250,000 when the transaction is completed. Bluejay will retain the remaining £3.75mn in shares of both developments.
Following the signing of the agreement, Bo Møller Stensgaard, chief executive officer, Bluejay, assured that Paltamo and Rautvaara have the potential to replicate the production of their Talvivaara mine, which has an estimated reserve of resources of 2bn mt of nickel, zinc, copper, and cobalt.
Jonathan Owen, the non-executive director of Metals One, considered that both projects represent a significant opportunity to develop a battery metal deposit of scale, that is well suited to supplying the vast global electric vehicle and energy storage markets.