Bluejay has signed a joint venture agreement with KoBold Metals at the company’s Disko-Nuussuaq nickel, copper, cobalt, platinum magmatic massive sulphide project in central west Greenland.
KoBold locates and develops new “ethical” sources of materials for electric vehicles and will earn 51% of the Disko-Nuussuaq licence holding through a two stage commitment.
The first stage is geological and geophysical evaluation of the site to refine drill targets using proprietary technology, with an initial $3.4m self funded by 31 December 2022.
The second stage is self funding of either US$11.6m in drilling expenditure or 15 pre-agreed drill holes within the Disko licence area by 31 December 2024.
Bluejay can maintain its 49% shareholding by funding its pro-rata commitment after the second stage and will manage field operations until 2024.
Should KoBold complete first stage work but not complete the drilling commitment in the second stage before 31 December 2024, 2% of the JV company and control will revert to Bluejay.
KoBold CEO Kurt House said: “The Disko region has seen the rare convergence of events in earth’s history that could have resulted in forming a world-class battery metal deposit. [Our] technology is perfectly suited to discovering new resources.”
He added Bluejay had a strong track record in Greenland and the potential of the Disko project was “outstanding”.