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Highlights
- Bluejay Mining plc has announced that it is exploring the option of spinning out its subsidiary Disko Exploration Limited.
- The proposed demerger may potentially lead to a separate listing of the subsidiary on the London Stock Exchange.
On 13 June, the leading UK-based explorer and developer of precious and base metals, Bluejay Mining plc (LON:JAY), announced that it is exploring the option of spinning out its subsidiary Disko Exploration Limited which is engaged in battery and critical metals exploration. The proposed demerger may potentially lead to a separate listing of the subsidiary on the London Stock Exchange (LSE).
Disko Exploration’s IPO
AIM-listed Bluejay Mining plc’s board is commencing a review into the demerger of its wholly-owned Disko Exploration Limited. Disko’s separate listing may potentially help Bluejay to make the most of the rising demand for strategic battery metals.
The move of launching Disko’s IPO would enable Bluejay to simultaneously develop both Disko and the fully owned Dundas Titanium A/S ilmenite project, in addition to the other asset in its portfolio. Disko would be entirely converted into a Greenland-focused development business, offering more financing flexibility to both the companies.
After a successful review of the IPO option, the shareholders of Bluejay would be approached for approval, and the listing may take place soon after that, considering the market conditions. On receiving approval from the shareholders, new shares in Disko would be given to the Bluejay shareholders in line with their shareholding in Bluejay through a distributed capital reduction.
After Disko’s listing, Bluejay will keep on pursuing the development of its asset portfolio, which would include its most advanced Dundas ilmenite project. Disko will be able to raise funds through the listing to pursue its interests in Disko-Nuussuaq nickel-copper-cobalt-PGE project in Greenland, over which Disko has 49% control. Disko also holds an interest in Kangerluarsuk and Thunderstone projects in Greenland.
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Bluejay’s share price performance
Bluejay Mining plc has been trading on the LSE since December 2013. The company’s performance has deteriorated over the past year with its one-year return standing at -43.58% as of 15 June 2022, with a year-to-date return of -36.60%.
The market cap of the company stands at £62.72m as of 15 June 2022. Bluejay Mining plc’s shares were down by 1.26% at 12:50 PM (GMT+1) on 15 June 2022, at GBX 5.90.
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Bottomline
At a time when prices of batteries and critical metals have been surging worldwide, Disko and Dundas have the perfect opportunity to capture the interest of investors. Separate listings will help in maximisation of shareholder value by offering greater development opportunities and flexibility to each entity.
The date on which the meeting regarding demerger and capital reduction will take place hasn’t been revealed yet by Bluejay. Hence, more details are awaited for making an abreast and aware decision.
