Bluejay Mining has raised £600,000 through a placing to advance exploration at its Hammaslahti copper-zinc-silver-gold project in Finland, the company announced Wednesday.
The AIM and FSE listed firm issued 60 million new shares at 1p per share to new investors in the fundraising round, sole-led by CMC Markets.
Bluejay Mining shares were down 17% to 0.96p at the time of writing.
The funds will primarily focus on delivering a maiden mineral resource estimate at Hammaslahti, where recent drilling intersected encouraging sulphide mineralization across all holes on the East lode ore body. Further drilling down-plunge and near-surface is planned to expand resources ahead of the estimate. Assays from the latest round of summer drilling are expected in early September.
According to management, Hammaslahti offers strong potential for near-term value creation. The private placement also provides working capital for planning at Bluejay’s zinc-lead-silver project in Greenland, while talks continue with prospective US and Nordic strategic partners interested in its portfolio of base metals projects in Finland and Greenland.
Exploration results so far at Hammaslahti have increased interest from potential partners, though no binding agreements are guaranteed, Bluejay stated.
The company said they were in discussions with five strategic investors with technical expertise to help progress their exploration activities.
The £600,000 placement comes after Bluejay raised £1 million in June through an oversubscribed share placing, also sole-led by CMC Markets. The junior explorer says its projects have continued to attract investor interest despite market volatility.
“We are grateful to receive funds for the further development of the portfolio, and welcome new investors in the Company who are excited to get involved with the new Bluejay story,” said Robert Edwards, Executive Chairman of Bluejay.
“The immediate use of these funds will position us for a productive and pivotal second half of 2023, and what we believe could be a transformational 2024. We have attempted to highlight the hidden value within our portfolio of energy transition focussed base metals assets.
‘First of all, we are awaiting the final assay results from our recent drilling campaign at Hammaslahti. Thereafter, we are aiming to develop a maiden mineral resource estimate for H2 2023 which encompasses recent drilling as well as some historical holes, notably the E-lode discovery hole (hole id. M424114-R325) which returned 8.65 metres (“m”) grading 2.2% copper (“Cu”), 2.0% zinc (“Zn”), 0.5 % lead, 47.5 g/t silver (“Ag”), and 0.5 g/t gold (“Au”), including 5.60m grading 3.2% Cu, 3.2% Zn, 81.1 g/t Ag, and 0.9 g/t Au.”