FinnAust now owns a majority interest in the Pituffik titanium project in Greenland
FinnAust said it has now acquired a 60% stake in BlueJay after securing approval from Greenland regulatory authorities, the receipt of which had held up the deal. The deal means FinnAust now owns a majority interest in the Pituffik titanium project in Greenland . Finnaust Mining plc the AIM listed exploration company with projects in Greenland, Finland and Austria, announced that it has completed the acquisition of a 60% stake in Bluejay Mining Limited (‘Bluejay’) following receipt of change of control consent from the Greenlandic authorities.
FinnAust has also placed 10.0 million shares following a subscription with Western Areas , the seller of BlueJay and FinnAust’s largest shareholder.
The associated Placing, announced on 9 December 2015, has also now completed. Accordingly, FinnAust now holds a majority interest in the 126sq km high grade Pituffik titanium project in Greenland, which has been proven to host an unusually pure titanium occurrence with three highly prospective target areas identified.
Defined terms used in this announcement shall have the same meaning as those terms defined and used in the circular of the Company dated 8 December 2015 and is available at www.finnaust.com.
Following the consent of the Greenlandic authorities to the change of control of the Mineral Exploration Permit held by Bluejay, the Bluejay Acquisition and the Placing have become unconditional. Accordingly, the Initial Consideration Shares, being 123,900,000 new ordinary shares of 0.01p each, have been issued to the Bluejay Vendors and the 10,000,000 Placing Shares have been issued and allotted by the Company.
The deferred consideration of 40,755,885 new ordinary shares of 0.01p each (“Deferred Consideration Shares”) will only become due if Bluejay is granted a mineral exploration permit over the offshore Pituffik project area and if the issue of the Deferred Consideration Shares does not trigger a mandatory offer pursuant to Rule 9 of the Takeover Code.
Under the terms of the Bluejay Acquisition, the Company has also been granted an option by the Bluejay Vendors to acquire the remaining 40% of Bluejay for the sum of £594,393 to be satisfied by the issue of 108,071,388 new ordinary shares of 0.01p each to the Bluejay Vendors, pro rata, to their respective holdings in Bluejay. The Option will be exercisable for a period of four years from the date of completion of the Bluejay Acquisition, so until 11 February 2020. The exercise of the Option is solely at the Company’s discretion. Shareholders should note that the Option will not be exercised if it would trigger a reverse takeover pursuant to the AIM Rules for Companies or if it were to trigger a mandatory offer pursuant to Rule 9 of the Takeover Code.