Exploration and development company Bluejay Mining will not follow through with its previously announced demerger plan, newly appointed executive chairperson Robert Edwards announced on Tuesday.

The company in June last year announced the demerger of Bluejay and Disko Exploration, with the former holding on to the Dundas mineral sands project, in Greenland as well as its Finnish assets.

Edwards, who joined the Bluejay team in October, has completed a strategic review and reported to shareholders that the board no longer deemed the demerger as an appropriate strategy.

“The primary conclusion was that Bluejay shareholders would not benefit from such a demerger of the subsidiary Disko Exploration and its projects from the Bluejay parent company and that, on a risk-weighted basis, Bluejay can achieve more by utilising its existing platform and unified pool of expertise in both Greenland and Finland,” he said.

“This expertise is almost unique, in my view. Our ability to successfully explore and progress projects, together with a suite of tier one partners, is our key strength. I would also add that Bluejay is clearly capable of progressing projects itself, something that I am determined the company should pursue more confidently in the future,” said Edwards.

The new chairperson said he had reviewed Bluejay’s entire portfolio of assets in Greenland and Finland, including the status of each of the projects, and had recalibrated its approach, where appropriate.

“The review which I carried out with the support of the entire Bluejay team, led by our CEO, Bo Stensgaard, was done to ensure that the firmest plan is in place on how best to move each project higher up the value curve so that we are best placed to maximise value for our shareholders. Crucially, Bluejay should be able to transparently demonstrate that considered milestones are achieved with every incremental allocation of shareholders' funds.”

Historically, Bluejay has led with the Dundas ilmenite project, the Disko-Nuussuaq nickel/cobalt/platinum group metals (PGMs) project and the Enonkoski nickel/copper/cobalt project. Bluejay has secured meaningful partnerships at all three, as well as $35-million of development equity commitments for Disko and Enonkoski.

However, moving forward, some of its lesser known 100% owned projects, such as the district-scale Kangerluarsuk polymetallic opportunity in west-Greenland, where it will drill this season, will receive more attention. In addition, at the Hammaslathi nickel/cobalt/PGMs licence in Finland, Edwards believes, for relatively modest expenditure, Bluejay may also be able to generate positive, meaningful progress.

“Bluejay owns 100% of each licence and therefore can capture 100% of the value creation should both live up to their potential.”

Edwards highlighted ­the Kangerluarsuk zinc/lead/silver project as an asset which would receive particular imminent focus. To this end, Bluejay announced a capital raising of up to $6-million, with the first tranche of $2-million being used to fund a drilling programme at Kangerluarsuk.

The company secured the subscription with US-based institutional investor Towards Net Zero.

"I am pleased to announce this equity subscription with Towards Net Zero. Up to $6-million has been secured in three tranches of $2-million, with the first $2-million expected to occur next week.

"The proceeds will, subject to closing contract negotiations with the drilling and logistical providers, be used to fund a maiden drilling programme at Kangerluarsuk in 2023.

"The funding of a drill programme at Kangerluarsuk is a decision taken by management and the Board of Bluejay based on compelling evidence and a decision made after the appropriate consideration. This is a district scale opportunity that hosts potentially commercial occurrences of Zn-Pb-Ag mineralisation," said Stensgaard.

Analysts at SP Angel commented that Edwards’ review highlighted a range of value opportunities and that renewed energy and focus should start showing results.

However, SP Angel analysts have expressed disappointment to see the company sign up a share subscription agreement. “[We] hope the team will be able to add value faster than the investor Towards Net Zero, LLC is able to sell new Bluejay Mining stock..”

Bluejay’s share price fell 18% on Tuesday to trade at 3.92p apiece.