Critical minerals needed for electric vehicles are in high demand and world renowned billionaires are now funding an exploration project in Greenland.
Mineral exploration company KoBold Metals, backed by Bill Gates, Jeff Bezos, Michael Bloomberg, and Ray Dalio, has signed a joint venture with British mining firm BlueJay in search for nickel, copper, cobalt, and platinum.
As per BlueJay’s statement, Kobold will invest $15 million in the Disko-Nuussuaq project on Greenland’s west coast in exchange for a 51% stake in the project.
Disko-Nuussuaq covers a 2,776 km² magmatic massive sulphide area, expected to be rich in nickel, copper, platinum, and cobalt.
In fact, based on BlueJay’s studies, it has the potential to host mineralization similar to the world’s largest nickel/copper sulphide mine, Norilsk-Talnakh in Siberia, Russia.
Kobold’s funding will be implemented in a two-stage earn-in commitment:
- Stage 1: By December 31, 2022, $3.4 million will be given for advanced geological and geophysical evaluation of Disko–Nuussuaq to refine drill-targets using KoBold’s proprietary technology.
- Stage 2: By December 31, 2024, $11.6 million will be given to either drilling expenditure or 15 pre-agreed drill holes within the Disko license area.
BlueJay will maintain its 49% shareholding by funding its pro-rata commitment after Stage II.
“This agreement is transformative for Bluejay,” said the comany’s CEO Bo Steensgaard. “We are delighted to have a partner at the pinnacle of technical innovation for new exploration methods, backed by some of the most successful investors in the world.”
Indeed, BlueJay, which is worth $91 million, is a relatively small player compared to other companies with licenses in Greenland, such as Anglo American.
Since the announcement, however, the company’s stock has traded 26% higher.
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