Bluelake Mineral AB (publ) ("Bluelake Mineral" and "the Company") will via its Norwegian subsidiary Joma Gruver AS ("Joma Gruver") participate in a meeting on August 18, 2021 with Røyrvik municipality in Trøndelag to present a zoning plan in relation to plans for restart of the copper and zinc mine in Joma. At the meeting, Joma Gruver will report regarding planned mining operations and the expected social, economic and environmental impact. The zoning plan and approximately 20 impact assessment studies for various areas (which have been published previously) will form the basis for the municipality's decision during the autumn concerning the zoning plan, which is an important step in the Norwegian permit process. Joma Gruver is of the opinion that a restart of the mine can have far-reaching positive consequences in several areas. Through an estimated investment of more than NOK 500 million, the mine will create many direct and indirect jobs and could function as a growth engine both locally and regionally. The number of inhabitants in the municipality is estimated to increase by approximately 25 % and create increased financial resources for further growth. The mine will be established and operated according to strict principles of sustainability with the least possible impact on the local environment and other sensitive and valuable interests such as nature, hunting, fishing and reindeer husbandry. As copper and zinc can be produced locally instead of being imported from other continents, the Joma mine would also contribute to the global environment through, among other things, lower carbon dioxide emissions.
In Joma, mining operations were conducted between 1972 and 1998 when extraction of approximately 11 million tonnes of ore containing copper and zinc took place. The Company is now in parallel developing the Joma and Stekkenjokk-Levi projects in Sweden (which are located about 60 km northeast of Joma). SRK Consulting has recently conducted an updated mineral resource estimate for Joma and concluded that there are indicated mineral resources of 5.6 million tonnes with grades of 1.04% Cu and 1.67% Zn and inferred mineral resources of 0.3 million tonnes with grades of 0.9% Cu and 1.3% Zn. In total, the Company has indicated mineral resources in Sweden and Norway of approximately 15 million tonnes holding copper and zinc, which could constitute sufficient resources for mining operations with a life span of approximately 20 years. With current market prices, the mining operations would be highly profitable, but according to preliminary calculations operations could maintain profitability even with copper and zinc prices reduced in half. As the Company's project is industrially and financially sound, the prerequisites for financing start-up of the mine are considered as very favourable after all required permits for mining have been obtained.
Socially and economically, the mine could create significant value both locally and regionally. In total, an estimated 165 jobs would be generated in the mining operations directly, of which two thirds or about 115 jobs locally in Røyrvik municipality and the remaining jobs seasonally in Swedish Stekenjokk-Levi. In the region, the mine could lead to many more indirect jobs for subcontractors and in the service sector through a so-called multiplier effect, which in similar projects has often shown that 2-3 times additional jobs can be created indirectly. In Røyrvik municipality, the number of new inhabitants via migration is estimated to increase by about 25% or 130 people. In this way, the long-term negative trend with a reduced number of inhabitants could be reversed.
Environmentally, the Joma mine could make positive contributions at several levels. In a global perspective, the mine could supply critical minerals in the green transition and electrification process that is taking place in the transport sector, industry and society as a whole. Electric vehicles, for example, require between three and four times more copper than fossil fuel-powered vehicles, and zinc is an important input in modern battery technology. With regional production of copper and zinc for the European battery and steel industry, the Joma mine could contribute to global environment via lower carbon dioxide emissions relative to imports from other continents. In a local perspective, the re-establishment of mining operations means that financial resources would be created which could be used to take care of environmental liabilities from historic mining operations that ended 20 years ago. Upgrading and remediation of the industrial area, where the mining operations will be conducted, is a natural part of the project to restart the mine.
For Joma Gruver it is of great importance that mining operations are conducted in a long-term sustainable mode and operational plans entail use of environmentally leading-edge equipment and technology. Tailings will be stored in excavated tunnels remaining from pervious mining and the impact on land and water will therefore be minimal in this respect. Dewatering of the mine will be conducted using thorough rinsing and water used in production will be purified and reused in a closed-loop system. Vehicles and machines should predominantly be electrically powered. Energy will be supplied via locally produced green electricity via hydropower. In its sustainability plan, Joma Gruver strives for co-existence and a constructive dialogue with other important interests and stakeholders in the area which, among other things, include mountain terrain, reindeer herding, hunting, fishing and tourism.
Stockholm, August 2021
Bluelake Mineral AB (publ)
The Board of Directors
Publication of information
This information is inside information which Bluelake Mineral AB (publ) is required to publish in accordance with the EU Market Abuse Regulation. The information was submitted, for publication on August 16, 2021 at 8.45 CET, by the contact person below.
For additional information, please contact:
Peter Hjorth, CEO, Bluelake Mineral AB (publ), phone +46-725 38 25 25
Email: [email protected]
General information about the Company
Bluelake Mineral AB (publ) is an independent Swedish company active in exploration and mine development of copper, zinc, nickel and gold resources.
The Company owns approximately 99% of the subsidiary Vilhelmina Mineral AB, which is focusing on the development of copper and zinc deposits in the Nordic region. In Sweden, the Company owns Stekenjokk, where a total of approximately 7 million tons of ore was mined between 1976 and 1988. According to previous resource estimates, there is a remaining indicated mineral resource of approximately 7.4 million tons with grades of 1.17% Cu, 3.01% Zn and 47 g/ton Ag (at cut-off grade of 0.9% Cu). In Norway, the Company is owner in the Joma field, where approximately 11.5 million tons of ore was processed between 1972 and 1998 with an average grade of 1.5% Cu and 1.5% Zn. The Joma field (excluding Gjersvik) is, according to a recent mineral estimate by SRK Consulting, containing indicated mineral resources of approximately 5.6 million tons with grades amounting to 1.04 % Cu and 1.67 % Zn and inferred resources of 0.3 million tons with grades 0.9 % Cu and 1.3 % Zn (at cut-off of 50 USD/ton).
In addition, the Company owns the nickel projects Rönnbäcken (which is Europe's largest known undeveloped nickel resource) and Orrbäcken in Sweden. According to the mining consulting company SRK, the Rönnbäcken project contains a mineral resource of 668 million tons with an average grade of 0.176% nickel ("measured and indicated"). The preliminary economic assessment that SRK completed predicts a production of 26,000 tons of high-grade nickel concentrate per year for 20 years, which would be a significant proportion of Sweden's total annual use of nickel which thereby has a strategic value. Orrbäcken is an exploration license that is considered to have potential as a nickel deposit.
The Company owns the gold project Haveri, through its subsidiary Palmex Mining Oy, which in 2014 carried out a so-called Preliminary Economic Assessment (PEA) prepared by SRK Consulting. This report estimates 1.56 million oz. historically inferred mineral resource of gold equivalents with a grade of 0.93 g/t gold.) Kattisavan is mainly considered to have potential as a gold resource and is located within the so-called gold line, close to projects such as Svartliden, Fäboliden and Barsele.
Bluelake Mineral AB (publ) ("the Company" or "Bluelake Mineral"), has via its Swedish subsidiary Nickel Mountain AB ("Nickel Mountain") from the Swedish Mining Inspectorate obtained extension with one year for each of the exploration permits named Kattisavan nr 4 (gold) and Orrbäcken nr 4 (nickel).
Bluelake Mineral AB (publ) ("Bluelake Mineral" or the "Company") announced on 15 July 2022 that the Company had entered into a final agreement regarding the sale of all shares in the Company's subsidiary Palmex Mining Oy to Mahvie Minerals AB ("Mahvie Minerals") (the "Sale") and the subscription of shares in Mahvie Minerals (the "Investment"). Bluelake has today completed the Sale and the Investment.
Bluelake Mineral AB (publ) ("Bluelake Mineral" or the "Company") announced on 20 June 2022 that the Company had entered into a letter of intent regarding the sale of all shares in the Company's subsidiary Palmex Mining Oy to Mahvie Minerals AB ("Mahvie Minerals") (the "Sale"). Bluelake has today entered into a binding agreement with Mahvie Minerals regarding the Sale. Bluelake Mineral has further raised loans of SEK 8 million (the "Loan") from private investors. The purpose of the Loan is partly to, as part of the Company's subscription for shares in Mahvie Minerals, finance Mahvie Minerals, and partly to strengthen the Company's cash position.
Bluelake Mineral AB (publ) ("Bluelake Mineral" or the "Company") has today entered into a non-binding letter of intent with Mahvie Minerals AB ("Mahvie Minerals") and the majority shareholders in Mahvie Minerals regarding the sale of all shares in the Company's subsidiary Palmex Mining Oy to Mahvie Minerals (the "Sale"). Bluelake Mineral will in the Sale receive a consideration of SEK 14,800,000 in the form of a promissory note, which shall be used to subscribe for new shares in Mahvie Minerals by way of set-off (the "Set-off Issue"). Furthermore, Bluelake Mineral shall invest additional SEK 4,000,000 in cash in Mahvie Minerals in a directed issue of shares (the "Cash Issue", and together with the Sale and the Set-off Issue, the "Transactions"). Following completion of the Transactions, Bluelake Mineral will own 50.1% of the shares in Mahvie Minerals, and the intention is to distribute the shares in Mahvie Minerals to the shareholders in Bluelake Mineral through a so-called Lex Asea dividend, in connection with which the shares in Mahvie Minerals are also intended to be listed on a multilateral trading facility (the "Listing").
Bluelake Mineral AB (publ) (the "Company" or "Bluelake Mineral") has, via its subsidiary Vilhelmina Mineral AB, been granted a Natura 2000 permit for mining operations on 2 June 2022. The County Administrative Board of Västerbotten has granted Vilhelmina Mineral AB a permit in accordance with Chapter 7 Section 28a of the Environmental Code for mining activities in connection with and within the Natura 2000 area Vardo, Laster and Fjällfjällen (SE0810394) in Vilhelmina municipality. According to the County Administrative Board the environmental impact assessment meets the requirements in chapter 6 of the Environmental Code. This permit is valid for 30 (thirty) years from the date of the decision and further advances the permitting process for the Company's Stekenjokk-Levi copper-zinc project.
The shareholders of Bluelake Mineral AB (publ) ("Bluelake" or the "Company") have held an Annual General Meeting on May 12, 2022 (the "AGM") whereby the following main decisions were made.
Bluelake Mineral AB (publ) (the "Company" or "Bluelake Mineral") is pleased to announce the results of a Preliminary Economic Assessment ("PEA") for its 100% owned copper and zinc project which comprises the Stekenjokk-Levi deposit, located in Sweden, and the Joma deposit, located in Norway (the "Project"). The PEA considers a target 750 kilo tons per annum ("ktpa") mining operation over a mine life of 17 years. The Company believes the Project has the potential to supply copper and zinc to the growing renewable energy economy of northern Europe.
The Board of Directors of Bluelake Mineral AB (publ) ("Bluelake Mineral" or "the Company") has today, with the support of an authorization from the Annual General Meeting held May 26, 2021, decided on a new share issue directed to a group of private investors (the "Investors") of a maximum of 1,396,647 shares at a subscription price of SEK 3.58 per share and at a total value of approximately MSEK 5 (the "Share Issue").