Bluejay Mining PLC raised US$7mln (£5.4mln) in a placing to fund a feasibility study for the Dundas ilmenite project in Greenland as well as for general working capital.
It placed 76.9 million new shares at 7 pence each, just slightly below the company's closing share price of 7.66 pence yesterday.
The exploration company said the fundraising saw the entry of a major UK institution as a new shareholder, and demonstrated the continued strong support of existing institutional investors, including its two largest shareholders, and increased support from government-backed institutions in Greenland and Denmark.
"For our fully permitted Dundas ilmenite project, this transaction marks an important step towards construction and commercial production. It will secure the completion of the bankable feasibility study, ensuring that Dundas is as robust and as profitable as possible," said Bluejay chief executive Bo Stensgaard.
"Completion of the feasibility study will allow authorisation of the funding from a lending syndicate led by our recently appointed premier European Investment Bank. Having the lead-arranger involved in the preparation of these studies should allow for fast-tracked decision making once complete,” he added.
The company will commence works at Dundas in the forthcoming field season to complete the necessary engineering, geo-technical and planning activities, including evaluation of an optimised mine schedule for production.
Shares in Bluejay were up 1.8% at 7.80p in mid-morning trading, outperforming a 0.07% rise in the FTSE AIM all share index.