LONDON (ShareCast) - (Sharecast News) - Greenland and Finland-focussed exploration and development company Bluejay Mining has signed a master distribution agreement with an unnamed Asian conglomerate with global interests in metals and mining, it announced on Wednesday, for the sale of up to 340,000 tonnes per annum of ilmenite from its flagship Dundas Project in Greenland.

The AIM-traded firm said the agreement would bring an up-to- 70% increase to its original memorandum of understanding of up to 200,000 tonnes per annum, and would be for a minimum of 250,000 tonnes per annum.

It said the agreement's upper amount equated to over 75% of planned full annual output at Dundas.

Bluejay said it was confident it would secure additional offtakes to cover the remaining 100,000 tonnes per annum of scheduled annual production.

It said the agreement was for an initial period of five years from the start of commercial production at Dundas, and could be renewed every 12 months

Pricing per tonne of product would be determined at the time of acceptance as referenced to independent industry data for ilmenite, less a handling commission.

Bluejay said the agreement endorsed the quality of, and the demand for, the Dundas ilmenite product.

Discussions with a number of entities over project financing for Dundas were continuing, the board said.

"Having one party take the bulk of our output and distribute it into smaller annual parcels as required by end users means significant savings will be made with reduced double handling and storage by the company," said chief executive officer Roderick McIllree.

"This agreement is yet another major step forward in the development of the project following the recent granting of the exploitation licence, and is an endorsement of the quality of the ilmenite we will produce.

"Prior to completing this agreement, we jointly undertook a global customer acceptance programme from which we received sufficient positive feedback to enter into this agreement."

McIllree said it expected that the product would ultimately be supplied into multiple international markets in Asia, including China and Japan, and a number of EU countries.

"The delivery of this key milestone does not mean that we can rest on our laurels, and we remain focused on delivering the other workstreams required for the successful development of the project.

"We are currently in discussions with a number of entities regarding project financing and these are progressing well.

"Additionally, we will be furthering discussions to secure offtake agreements on the small residual production from Dundas."

At 1142 GMT, shares in Bluejay Mining were down 3.24% at 13.74p.

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