KoBold, which is backed by billionaires Gates and Bezoz, can earn up to 51% in the nickel, copper, cobalt, platinum magmatic massive sulphide project in Greenland
UK-based Bluejay Mining has signed a joint venture (JV) agreement with KoBold Metals pertaining to its Disko-Nuussuaq project located on the southwest coast of Greenland.
The agreement will enable KoBold Metals to earn a stake of 51% in the nickel, copper, cobalt, platinum magmatic massive sulphide project located within the West Greenland Tertiary Igneous Province.
KoBold Metals is a technology-driven mineral exploration company backed by Bill Gates and Jeff Bezos. It is engaged in discovering and developing new ethical sources of the critical materials needed for electric vehicles.
Under the terms of the deal, KoBold Metals can earn the stake through two stages. In stage 1, the company will contribute its technology for the advanced geological and geophysical evaluation of the Disko-Nuussuaq licence for refining drill targets.
The company will invest $3.4m for the execution of stage 1 by the end of next year.
In stage 2, KoBold Metals will make sole funding of $11.6m in drilling expenditure or carry out drilling of 15 pre-agreed holes within the licence area by the end of 2024.
KoBold Metals CEO Kurt House said: “The Disko region has seen the rare convergence of events in earth’s history that could have resulted in forming a world-class battery metal deposit.
“KoBold’s technology is perfectly suited to discovering new resources at Disko. Our proprietary library of analytical tools, Machine Prospector, will enable effective deployment of exploration capital and maximize our chances of discovery at Disko-Nuussuaq.”
Bluejay can maintain its stake of 49% by funding its pro-rata commitment after stage 2.
In case of KoBold Metals completing only the stage 1 work, then 2% of the JV company and thereby control of the project will transfer to Bluejay with the two parties subject to continuing standard dilution methodology.
Bluejay CEO Bo Stensgaard said: “Disko is a project with great potential for the discovery of globally significant deposits of battery metals. It is, however, this scale that necessitated a financially and technically strong partner to develop Disko.
“After many conversations with many groups from all over the world we are pleased to enter into partnership with a group that shares our position on fairness and providing a transparent long-term outcome for shareholders as well as being a credible and reliable partner that shares our commitment to environmental sustainability.”
Spread over 2,776 km² of land, the Disko-Nuussuaq project has two main target areas, which include the Kugg Project and the Illug Project.