Bluejay Mining* (LON:JAY) 15.5p, Mkt Cap £119m – Placing of £20.7m worth of stock raises £3.5m in new money as Western Areas sells 138m shares
BUY Target Price 22p
CLICK FOR PDF
• BlueJay Mining report the placing of £3.5m worth of new shares and the placing of 138.6m shares from Western Areas at 12 pence per share through an accelerated book build managed by the company’s broker SP Angel.
• Western Areas, an Australian nickel producer, which has backed the company for some years has placed 138.6m shares in order to raise funds to support its activities in Australia.
• Western Areas is developing a DFS for its new Odysseus nickel project, its New Morning project and is working on Mill Recovery Enhancement. Exploration at Odysseus North shows great results with 5.3m grading 15.2% nickel including 3.4m at 22.0% nickel.
• Western Areas’ New Morning project is largely approved and is easily accessible from Western Areas’ other two mines. It contains a massive sulphide resource of 418kt grading 3.4% nickel and a larger but lower grade resource of 5.1mt at 1.3% nickel.
• 29m new ordinary shares worth £3.5m were placed on behalf of Bluejay Mining at 12p/s alongside the shares placed for Western Areas.
• A further 5m shares were also made available to meet additional demand by some ‘persons discharging managerial responsibilities in Bluejay’.
• We recently raised our valuation on Bluejay Mining to 22p from 15p on the back of higher ilmenite prices and on the release of today’s resource estimate.
• We apologies to investors who have had their allocations reduced through the actions of certain funds and unusually strong demand for the stock.
*SP Angel act as nomad and broker to Bluejay Mining