TIDMJAY
RNS Number : 5970J
Bluejay Mining PLC
23 December 2020
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector:
Mining
23 December 2020
Bluejay Mining plc
('Bluejay' or the 'Company')
Master Distribution Agreement reached with Asian
conglomerate
for up to 340,000 tonnes per annum of Dundas ilmenite
Bluejay Mining plc, the AIM and FSE listed, and OCTQB traded,
exploration and development company with projects in Greenland and
Finland, is delighted to announce that it has signed a Master
Distribution Agreement (the 'Agreement') with a large, long
established Asian Conglomerate with global interests in Metals and
Mining (the 'Firm') for the sale of up to 340,000 tonnes per annum
('tpa') of ilmenite from the Company's flagship Dundas Project,
Greenland ('Dundas').
Highlights
-- Agreement signed for up to a maximum 340,000 tpa,
approximately a 70% increase to the Company's original MOU of up to
200,000 tpa
-- The Agreement will be for a minimum of 250,000 tpa
-- The Agreement's upper amount equates to over 75% of planned full annual output at Dundas
o Bluejay is confident it will secure additional offtakes in due
course to cover the remaining 100,000 tpa of scheduled annual
production
-- The Agreement is for an initial period of five years from
commencement of commercial production at Dundas and can be renewed
every 12 months
-- Pricing per tonne of product will be determined at the time
of acceptance as referenced to independent industry data for
ilmenite (e.g. TZMI), less a handling commission
-- This agreement endorses the quality of, and the demand for, the Dundas ilmenite product
-- Discussions with a number of entities with regards to project
financing Dundas, including the Firm, continue, and the Company
will update the market on this and the Dundas 2021 work programme
in due course
The Agreement
The Master Distribution Agreement is an extensive document and,
at this stage, is commercially sensitive. This is one of the
primary reasons why our new counterparty, the Firm, is not publicly
named at present. It is our expectation that, as we get closer to
further milestones for the Dundas project, this will change.
Bluejay CEO, Roderick McIllree, said: "I am delighted to have
now executed this Master Distribution Agreement with such a
Blue-Chip Asian conglomerate on such a significant proportion of
our expected annual production from Dundas. Having one party take
the bulk of our output and distribute it into smaller annual
parcels as required by end users means significant savings will be
made with reduced double handling and storage by the Company.
"This Agreement is yet another major step forward in the
development of the Project following the recent granting of the
exploitation licence, and is an endorsement of the quality of the
ilmenite we will produce. Prior to completing this Agreement, we
jointly undertook a global customer acceptance programme from which
we received sufficient positive feedback to enter into this
agreement. It is expected that this product will ultimately be
supplied into multiple international markets in Asia (including
China and Japan), and a number of EU countries.
"The delivery of this key milestone does not mean that we can
rest on our laurels, and we remain focused on delivering the other
workstreams required for the successful development of the Project.
We are currently in discussions with a number of entities regarding
project financing and these are progressing well. Additionally, we
will be furthering discussions to secure offtake agreements on the
small residual production from Dundas. I would like to finish by
thanking our shareholders and stakeholders for their support, but
especially my colleagues at Bluejay for navigating a challenging
year and finishing it with three major milestones. We look forward
to further successes together as we enter 2021."
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
------------------------------ ---------------------
SP Angel Corporate Finance
LLP
Ewan Leggat (Nominated Adviser) +44 (0) 20 3470 0470
------------------------------ ---------------------
SP Angel Corporate Finance
LLP
Adam Cowl (Nominated Adviser) +44 (0) 20 3470 0470
------------------------------ ---------------------
Hannam & Partners (Advisory)
Andrew Chubb LLP +44 (0) 20 7907 8500
------------------------------ ---------------------
Tim Blythe Blytheweigh +44 (0) 20 7138 3205
------------------------------ ---------------------
Megan Ray Blytheweigh +44 (0) 20 7138 3205
------------------------------ ---------------------
Notes
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 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 Mineral Resource reported in
accordance with the JORC Code 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 financing ahead of
commencing commercial production at Dundas in order to create a
company capable of self-funding exploration on its 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. Bluejay also has a
prospective joint-venture agreement with a mining major at
Enonkoski in Finland.
**ENDS**
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END
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