The Bluejay Mining PLC (LON: JAY) share price plunged 21.4% after announcing that it had raised gross proceeds of £600,000 through the private placement of 60,000,000 shares to new shareholders for 1.0 pence per share.
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The adverse reaction from investors was expected as the company offered a discount to participating shareholders, hence, the decline in the Bluejay Mining share price. The company will use the funds to develop its 100% owned Hammaslahti copper-zinc-silver-gold project in Finland.
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Bluejay Mining completed two phases of diamond drilling over the summer and is awaiting final assay results from the second phase holes. The company is also waiting for results from an ongoing lithogeochemical and petrographic study, and some further regional geochemical analyses are also expected.
The company also revealed that it is in discussions with strategic investors regarding partnering on one or more of its base metals projects in Greenland and Finland. The firm cautioned investors that there was no guarantee of reaching binding agreements with the investors.
Bluejay Mining noted that recent drilling on the East-lode (‘E-lode') ore body mineralisation at Hammaslahti has encouragingly intersected sulphide mineralisation in all holes. Further work is planned on the E-lode and the down-plunge extensions to previously mined ore lodes.
Management continues to believe that the Hammaslahti Project has the potential to provide meaningful near-term value to shareholders. The company wants to deliver the maiden MRE for the ore bodies.
Robert Edwards, Executive Chairman of Bluejay, stated: “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. 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…”
Bluejay Mining share price.
The Bluejay Mining share price plunged 21.37% to trade at 0.92p, from Tuesday’s closing price of 1.17p.
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