Rio Tinto may acquire up to 75% stake in the Enonkoski Project by providing $20m funding for the project
Bluejay Mining, an exploration and development company, and Rio Tinto Mining and Exploration company have entered into a joint-venture and earn-in agreement on the Enonkoski nickel project in Finland.
Under the terms of the an option to joint venture agreement, Rio Tinto may acquire up to 75% stake in the Enonkoski Project by providing $20m funding for the project expenditures or cash equivalent payments over three stages.
In the initial stage, the company could gain over 51% stake by providing $5m by November 2023, of which $0.4m is expected to be spent by 30 March next year.
Bluejay said that in the second stage Rio Tinto could move to 65% interest by spending $5m by November 2025.
In the final stage, the company’s stake in the project will increase to 75% stake, upon spending the remaining $10m by November 2029.
Bluejay Mining CEO Rod McIllree said: “This belt has demonstrable nickel occurrences and past production and it’s a testament to the project that we have attracted a blue-chip miner at Enonkoski.
“At Bluejay and FinnAust, our wholly owned Finnish subsidiary, we have a strategy of discover, develop, deliver, and we have always maintained that our portfolio is of exceptional quality and value, derived through our exploration expertise.”
Enonkoski nickel project details
Between 1984 and 1994, the Enonkoski mine produced 6.7 million tonnes at an average grade of 0.8% nickel.
The Enonkoski project covers over 2,300ha over mafic – ultramafic rocks between and along more than 15km of strike from the historical Enonkoski and Hälvälä mines.
The mines are operated by Finnish state-owned mining company Outokumpu.