Dual-listed Bluejay Mining has conditionally raised £11.5-million by way of issuing shares at 10p each to further the development of its projects in Greenland.
The fundraising will take place in two phases, with a £7.5-million firm placing and a £4-million subscription by Greenlandic and Danish government investment funds.
“We are delighted to have received strong support from two important Greenlandic and Danish government backed institutions. This support demonstrates the mutual desire to grow the country's mineral resource industry and we hope that Bluejay will be that vanguard,” said CEO Roderick McIllree.
The two funds are Greenland Venture, which is the largest equity fund in Greenland and Vaekstfonden, which is the Danish state's investment fund.
Bluejay said that the fundraising, in addition to the new Danish and Greenlandic government shareholders, were well supported by existing and new institutional investors from Germany, Denmark, the UK and Ireland.
The funds would be used to advance the Dundas ilmenite project towards granting a mining licence and for the preparation of full development.
It would also be used towards maiden drilling campaigns at Disko and at Kangerluarsuk next year.
Bluejay traded at 10.26 p a share on Wednesday afternoon.