LONDON (ShareCast) - (Sharecast News) - Greenland and Finland-focussed Bluejay Mining updated the market on its offtake negotiations for the Dundas Ilmenite Project in Greenland on Wednesday, reporting an up-to-50% increase in the potential off-take amount of 250,000 to 300,000 tonnes per annum.
The AIM-traded firm said the memorandum of understanding provides for a potential off-take of up to 70% of total annual output at Dundas, adding that a three-month extension had been made to negotiate a definitive distribution agreement.

On 14 April, Bluejay announced the signing of the memorandum of understanding with an unnamed "multinational" commodity trading firm, which was also a major ilmenite market participant.

It said on Wednesday that the parties had agreed to extend both the size of the proposed offtake from its flagship Dundas project, to up to 300,000 tonnes per annum, and to extend the agreement by three months to 31 October to allow time for a definitive purchase agreement to be completed.

The multinational trading firm had also indicated a willingness to participate in project financing for Dundas, if feasible, the board claimed.

Dundas was currently being assessed for a mining licence by the Greenland government, with a decision expected later in the year.

Bluejay said it would now move to finalise the last remaining 140,000 to 190,000 tonnes per annum of output to interested third parties, with a view to obtaining off-take agreements for all of the total annual scheduled production potential from Dundas.

"The extended agreement is an exciting step in the development of Dundas," said chief executive officer Roderick McIllree.

"With the current optimisation study delivering some positive results and the mining licence application now in the system and advancing well, we look forward to updating the market in due course on these and other developments."

At 0957 BST, shares in Bluejay Mining were down 6.25% at 6.75p.

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