FinnAust Mining plc ORD 0.01P (LON:FAM), the AIM and FSE listed company with projects in Greenland & Finland, is pleased to announce that it is the intention of the Company to exercise the option to acquire 82,560 shares of Bluejay Mining Limited (‘Bluejay’) (the ‘Bluejay Option’) representing 39.63 per cent. of Bluejay that it does not already own. Exercising the Bluejay Option will result in the Company increasing its ownership in Bluejay and the Pituffik Titanium Project (‘Pituffik’ or ‘Pituffik Project’) from 60.37 per cent. to 100 per cent. Following the exercise of the Bluejay Option, the Company intends to change its name to Bluejay Mining plc. Exercising the Bluejay Option and the change of name is conditional on Shareholder approval to be sought at a General Meeting to be held by FinnAust, details of which are set out below.
· FinnAust to increase interest in Bluejay to 100 per cent. Bluejay is the 100 per cent. owner of the 150km2 high grade Pituffik Titanium Project located in North West Greenland. The Pituffik Project comprises three main exploration target areas across more than 80km of coastline historically proven to contain large and high-grade accumulations of primary ilmenite, with mining in Greenland envisaged to be achieved via a low capex dredging operation.
· The Pituffik Project has demonstrated the potential to be a top percentile ilmenite project in terms of heavy mineral grade with the maiden mineral resource targeted to be published in Q1 2017.
· Advancing the Pituffik Project continues to be the Company’s primary focus. The near term strategy of the Company is the delivery of a bulk sample during 2017 and larger scale production in 2018.
· The Directors believe that moving to 100% ownership of the Pituffik Project will provide certainty of title and remove any issues associated with joint venture partners.
· The consideration for Bluejay was agreed in December 2015 with the number of shares to be issued pursuant to the Exercise of the Bluejay Option agreed at the time the Company purchased its initial interest in 60.37 per cent. of Bluejay (see RNS dated 9 December 2015).
· Acquisition price of £594,393 to be satisfied by the issue of 108,071,388 new Ordinary Shares to the Bluejay Vendors.
· Recent placing of 76,428,572 Ordinary Shares at 7 pence to raise £5.35m in December 2016 demonstrated strong support for the Company and the Pituffik Project.
FinnAust Mining plc ORD 0.01P Managing Director Rod McIllree said, “Pituffik has proven its potential to be in the top percentile of ilmenite projects in terms of heavy mineral grade. With a maiden mineral resource targeted to be published in Q1 2017, a bulk sample due later this year, and larger scale production targeted in 2018, we believe the Project offers significant value upside. It is therefore our intention, subject to shareholder approval, to increase our interest in the Project to 100 per cent. by acquiring the remaining 39.63 per cent. interest in Bluejay which we do not currently own. Being the sole owner of Pittufik will ensure that the Company benefits from maximum exposure to this highly prospective asset and will also aid future development plans by having a simplified ownership structure.
“Whilst we maintain additional assets in Finland, which offer further upside to our company, our primary development focus is undoubtedly on our portfolio of assets in Greenland. Accordingly, we are proposing a change of name to BlueJay Mining plc. This change is again subject to shareholder approval at a General Meeting to be held in a few weeks time. We believe the proposed change of name and exercise of the Bluejay Option will best position our company for growth.”
Notice of General Meeting
The Board of FinnAust announces a General Meeting of the Company to be held at The Washington Mayfair Hotel, 5 Curzon Street, London, W1J 5HE on 10 March 2017 at 10:00 a.m. for the purposes of approving the exercise of the Bluejay Option.
The circular convening the General Meeting dated 20 February 2017 (‘Circular’) will be posted to shareholders today. Further details of the Bluejay Acquisition (which constitutes a related party transaction under the AIM Rules for Companies), Rule 9 Waiver and Change of Name as extracted from the Circular are set out below.
The Circular is available at www.finnaust.com