Jul 31, 2021

Bluejay sells Finland assets to battery metals business

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Bluejay Mining agrees to sell its nickel, zinc, copper and cobalt assets in Finland to battery metals miner Metals One for US$5.6m

Bluejay Mining, an explorer and developer, headquartered in Greenland, has sold two of its Finnish projects - Paltamo and Rautavaara - to Metals One Corporation for a total of around US$5.6m. The deal will see the battery metals miner gain shares in nickel, zinc, copper and cobalt, which are all key in the production of batteries for electric vehicles. 

“We are pleased to potentially monetise yet another project in our portfolio of high-quality mineral projects,” says Bo Møller Stensgaard, CEO of Bluejay. “While these assets are non-core within our portfolio, we believe that within Metals One, a dedicated battery metals group in which we will become a significant shareholder, they have the potential to create additional value for all parties.”

Bluejay is optimistic about the multi-million deal

Bluejay is also set to appoint Thomas Levin as Technical Director to the board of Metals One, claiming that his local expertise and experience will provide valuable support and accelerate the activities of the company’s operations. 

"This move is in line with our stated strategy of partnering our projects to optimise the best expenditure/ownership outcome for shareholders,” continues Stensgaard. “With our existing Enonkoski nickel joint venture, the Outokumpu copper-gold cobalt project, as well as the historical Hammaslahti copper mine, remain the focus of our Finnish team. We believe that this offer streamlines our Finnish portfolio while maintaining exposure to any exploration and development success.”

The deal is timely as demand for nickel required for the production of battery metals is estimated to grow by more than 500% in the coming decade. Concerns surrounding the environmentally conscious supply of metals continue to dominate the thoughts of mining corporations as their deals and operations are placed under a sustainable microscope. 

Chief Executive of Tesla Elon Musk has announced he is willing to provide “a giant contract for a long period of time” to mining companies capable of mining “efficiently and in an environmentally sensitive way,” spurring others in the industry to scramble in search of sustainable resources, technology, and results.

Metals One looks forward to the potential provided by the new nickel deal

Non-executive Director of Metals One Johnathan Owen highlights the importance of the company’s battery metals vision and how seriously it's taking its approach to become a global supplier. 

“Metals One is a vehicle created specifically to target what we believe will be one of the fastest-growing sectors of the mining industry in the years to come - battery metals. These are the metals that are and will continue to underpin the global technology industry, the energy transition and ultimately the pathway to decarbonisation. 

“We believe the Paltamo and Rautavaara Ni-Zn-Cu-Co projects, with their analogies and proximity to the Talvivaara mine, represent a significant opportunity to develop a battery metal deposit of scale, in a stable jurisdiction, that is well suited to supplying the vast global electric vehicle and energy storage markets.”

The two-billion-tonne Talvivaara mine sits adjacent to the Paltamo and Rautavaara projects and is one of Bluejay’s most successful operations to date, with its capacity for the production of ore currently estimated at over 10 million tonnes a year.

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