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Acquisition in Greenland; Rod McIllree appointed as Managing Director to Board
FinnAust Mining plc, the AIM listed exploration company with projects in Finland and Austria, has announced it has signed a binding agreement to acquire an initial 60% interest in Bluejay Mining Limited. Bluejay is the 100% owner of the 126sq km high grade Pituffik titanium project in Greenland.
The Bluejay Acquisition will see the Company expand its presence in the broader Nordic region in line with its stated strategy of building a multi-commodity portfolio of high value assets. The Bluejay Acquisition is conditional on Greenlandic regulatory approval and Shareholder approval to be sought at a General Meeting to be held by FinnAust, details of which are set out below.
Highlights
· Acquisition price of £0.9 million satisfied through the issue of up to 164,655,885 new ordinary shares (no cash component) with an option to acquire the remaining 40%
· Placing of 10 million New Ordinary Shares at 2 pence to raise £200,000 with major shareholder Western Areas Limited and Bluejay Placees demonstrating strong support for the Company and the Pituffik Project
· The presence of a very large and unusually pure titanium occurrence has been demonstrated by initial 2015 fieldwork by Bluejay as well as historical work by the Geological Survey of Greenland and Denmark
· Work to date indicates potential for the Pituffik Project to be in the top percentile of projects worldwide in terms of heavy mineral grade
· Close to infrastructure; deep-water port, international airport and Town of Qaanaaq
· Greenland is a highly prospective yet underexplored emerging mining destination with a government focused on developing a resource based economy
· Roderick McIllree newly appointed to the Board as Managing Director, bringing strong in-country experience as founder of Greenland Minerals & Energy Ltd
· Graham Marshall to move to the position of Non-Executive Chairman and Daniel Lougher to move to the position of Non-Executive Director
· Strategic review now completed in conjunction with cornerstone investor Western Areas. Company’s strategy is as follows:
o Secure high quality, low cost assets with demonstrable paths to production by taking advantage of the current cyclical downturn and depressed commodity markets to execute this strategy; and
o Ensure costs across all the Company’s project areas are sustainable taking into account current market conditions.
FinnAust Managing Director Rod McIllree said, “The Pituffik Project fits neatly with our stated strategy of acquiring high grade & high value projects within the broader Nordic region. We believe this deposit has the potential to become a significant value driver for the Company as we undertake work to strengthen our knowledge of the asset. This understanding comes from reviewing the recent work completed by Bluejay as well as decades of historical technical and academic assessment by GEUS and others. We look forward to updating shareholders with further information in the near term.
“Work programmes are being prepared, with updates expected in the new year, focused on the singular goal of generating cash flow from what is a relatively simple yet high value opportunity to create a company capable of self-funding exploration and development opportunities.
“I am pleased to join FinnAust in the capacity of Managing Director and over the last few months I have completed a detailed review of the Company, its personnel and assets. I am pleased to advise that in conjunction with the existing management team and cornerstone shareholder we have now defined a strategy that is focused on growth via acquisitions with specific focus on development opportunities within the Nordic region. FinnAust will continue to enjoy the support and expertise of Western Areas a leading miner which, when blended with my deep knowledge and experience of Greenland, I believe positions FinnAust to deliver on this strategy.”
Outgoing FinnAust Chairman Daniel Lougher said “I have worked with Rod at FinnAust now for several months and I am happy that the strategy we have defined will be successful. With Graham Marshall as the new FinnAust Chairman, the management team now has sufficient resources and support to maximise its vision of growth through acquisitions and we look forward to continuing as a major shareholder and participating in their activities in the future.”
