Western Areas to sell $27m stake in Bluejay

Nickel miner Western Areas has announced plans to sell its stake in an ilmenite-copper-nickel explorer, which is dual-listed on the AIM and FSE markets, for up to $27.5 million.

Western plans to sell its 138.6 million shares in Bluejay Mining, equal to a 18.8 per cent stake, as the Greenland and Finland-focused exploration company undertakes a £3.5 million capital raising.

The Perth-based nickel miner said it expected to reap between $26.5 million and $27.5 million from the sale.

“As announced by Bluejay overnight, a share sale and associated private placement is being conducted via an accelerated bookbuild placing to institutional investors,” Western said.

“Mirabaud Securities and SP Angel Corporate Finance are acting as the placing agents for the transaction.”

In a statement, Bluejay chief executive Roderick McIllree thanked Western for its support.

“They have worked tirelessly to ensure the company was well supported throughout the last several years,” Mr McIllree said.

“I am pleased with the outcome of this process, as this has led to a well-structured reorganisation of the company’s shareholders.”

Western shares were 1.4 per cent lower to $2.03 each at 10am.