UK-based exploration and development company Bluejay Mining has scrapped its plan to spin off its battery and critical metals exploration subsidiary Disko Exploration.
In 2022, Bluejay announced plans to demerge Bluejay and Disko Exploration, with the former retaining the Finnish assets and the Dundas mineral sands project in Greenland.
Bluejay’s newly appointed executive chairperson Robert Edwards concluded, following the completion of a strategic review, that the planned demerger was ‘no longer an appropriate strategy’.
Edwards said: “The primary conclusion was that Bluejay shareholders would not benefit from such a demerger of the subsidiary Disko Exploration and its projects from the Bluejay parent company and that, on a risk-weighted basis, Bluejay can achieve more by utilising its existing platform and unified pool of expertise in both Greenland and Finland.”
The new chairperson said he had reviewed the entire portfolio of assets of Bluejay in Greenland and Finland, including the projects’ status, and had recalibrated its approach.
Edwards added: “This expertise is almost unique, in my view. Our ability to successfully explore and progress projects, together with a suite of tier-one partners, is our key strength. I would also add that Bluejay is clearly capable of progressing projects itself, something that I am determined the company should pursue more confidently in the future.”
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Furthermore, Bluejay secured up to $6m via a three-part share subscription with US-based investor Towards Net Zero.
The funds are planned to be used for working capital purposes and the summer drilling programme at the Kangerluarsuk lead-zinc-silver project in West Greenland.
The project comprises two 100%-owned mineral exploration licences, covering a total area of 692km² within the Karrat Group, a major Paleoproterozoic meta-sedimentary basin.