Western Areas sells stake in Bluejay Mining for $20.36m
Western Areas has completed the sale of its 18.8% interest in Bluejay Mining for A$27m ($20.36m) to institutional investors.
Western Areas managing director and CEO Daniel Lougher said: "This transaction will return material value back to Western Areas following a period of significant growth and value generation by Bluejay.
"It also assists in the transformation of Bluejay into a mineral sands developer with a stronger, and more appropriate, institutionally owned share register."
The company noted that sale proceeds will be used to fund projects such as the Mill Recovery Enhancement Project at Forrestania and the Odysseus Definitive Feasibility Study at Cosmos.
Speaking about Western Areas’ stake sale, Bluejay CEO Roderick McIllree said: "I am pleased with the outcome of this process, as this has led to a well-structured reorganisation of the company's shareholders.
“Most importantly, we now have a significant UK-centric institutional register, which befits the company as we move now move into a period of prolonged growth."
Meanwhile, Bluejay also intends to raise up to £3.5m through a share issue.
Alongside general working capital purposes, proceeds of the equity fundraising will be used on development work at Bluejay’s Pituffik project in Greenland.
Bluejay is listed on the London AIM market and Frankfurt Stock Exchange, and has several prospective licences in Greenland and Finland.
The Pituffik project is estimated to have an inferred resource of 23.6 million tonnes at 8.8% ilmenite for the total area tested.