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Bluejay Mining signs ilmenite MOU with multinational company, has enough working capital to last four years, if necessary

Published: 03:17 14 Apr 2020 EDT

BlueJay Mining PLC -

Bluejay Mining PLC (LON:JAY) said it has signed a memorandum of understanding with a multinational commodity trading company and major ilmenite market participant, with a target of 200,000 tonnes per year of ilmenite production as part of ongoing commercial discussions.

Meanwhile, the group added, the first bulk sample of heavy minerals concentrate batch has been produced at Bluejay's pilot plant in Contrecoeur for Rio Tinto Iron and Titanium.

The pilot plant commenced operation in February 2020 and had been running at full capacity for several weeks until the coronavirus  (COVID-19) outbreak.

The plant is now on care and maintenance in line with Quebec government guidance that all non-essential businesses should close. Accordingly, Rio Tinto will delay the smelter test until 2021.

Separately, the group said, discussions with the Greenlandic authorities are ongoing regarding alternatives ways of conducting the Public Consultation process, given the imposed restrictions.

The company has also successfully implemented a cost-saving programme. Bluejay’s new budget demonstrates up to four years of working capital if required.

This includes a 30% reduction in all staff pay, including directors, lasting until September.

"The company continues to work tirelessly to advance all our projects,” said chief executive Rod McIllree in a statement.

“Since our last update at Dundas, we have signed a conditional agreement with a major international ilmenite participant to place nearly half of our planned production, which also includes the prospect of project finance. We are hopeful that this preliminary agreement concludes successfully and is followed with orders for additional ilmenite demand from our other ongoing negotiations.  

"We also constructed a pilot plant in Contrecoeur, Quebec and commenced processing high-grade material, which was shipped to this pilot plant in Canada during 2019. However, the pilot plant has now been placed on care and maintenance until a resumption of global activities due to COVID-19 restrictions,” he added.

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