Business
Conditional Agreement Extension and Increase
Conditional Agreement Extension and Increase.
About this update from 80 Mile Plc
[{"type":"text","content":"\n \n \n RNS Number : 6806T\n Bluejay Mining PLC\n 22 July 2020\n \n \n \n Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining\n 22 July 2020\n Bluejay Mining plc ('Bluejay' or the 'Company')\n \n Conditional Agreement Extension and Increase for up to 300ktpa of Dundas Ilmenite\n \n Bluejay Mining plc, the AIM and FSE listed company with projects in Greenland and Finland, is pleased to provide an update on its offtake negotiations for the Dundas Ilmenite Project ('Dundas' or the 'Project') in Greenland announced on 14 April 2020 ('MOU').\n \n Highlights\n \n · Up to a 50% increase in potential off-take amount of 250-300ktpa from the 200tkpa of Dundas ilmenite\n \n · The MOU provides for a potential off-take of up to 70% of total annual output at Dundas\n \n · A three-month extension to the MOU in order to negotiate a definitive distribution agreement\n \n Background\n On the 14 April, 2020 Bluejay announced the signing of a memorandum of understanding with a multinational commodity trading firm who are also a major ilmenite market participant. We are pleased to announce that the parties have agreed to extend both the size of the proposed offtake from Dundas, the Company's flagship development in Greenland by up to 50% from 200ktpa to up to 250-300ktpa and extend the agreement by three months to 31 October 2020 to allow time for a definitive purchase agreement to be completed. The multinational trading firm have also indicated a willingness to participate in project financing for Dundas, if feasible. Dundas is currently being assessed for a mining licence by the Greenland government with a decision expected later this year. Shareholders should note that there is no guarantee that the definitive purchase agreement or project financing for Dundas will be completed.\n \n The parties have agreed to potentially increase the proposed contract size to up to 300ktpa, representing up to a 50% increase in potential offtake and representing up to approximately 70% of the total proposed annual output of Dundas. \n \n The Company will now move to finalise the last remaining 140-190ktpa output to interested third parties with a view to obtaining off-take agreements for all of the total annual scheduled production potential from Dundas.\n \n \n \n Bluejay CEO, Roderick McIllr...