An agreement has been signed between mineral exploration company KoBold Metals and London-listed Bluejay Mining for searching for critical materials in Greenland that are used in electric vehicles. KoBold is backed by billionaires including Jeff Bezos and Bill Gates.
Bluejay said in a statement that $15 million will be paid in KoBold for exploration of the Disko-Nuussuaq project on the west coast of Greenland against a stake of 51 per cent in the project. KoBold makes use of artificial intelligence and machine learning for exploration of raw materials.
The news pushed up shares of BlueJay by 26 per cent.
The license holds metals such as nickel, copper, cobalt and platinum and the funding will cover evaluation and initial drilling.
A climate and technology fund backed by Microsoft co-founder Bill Gates, Bloomberg founder Michael Bloomberg, Amazon founder Jeff Bezos, and Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates called Breakthrough Energy Ventures owns KoBold.
Silicon Valley venture capital fund Andreessen Horowitz and Norwegian state-controlled energy company Equinor are among the other investors in KoBold.
The properties of the targeted area in western Greenland bear similarities to the geology of Russia’s Norilsk region which is a major producer of the rare minerals of nickel and palladium according to findings of previous studies, BlueJay said.
“This agreement is transformative for Bluejay,” said the comany’s CEO Bo Steensgaard. “We are delighted to have a partner at the pinnacle of technical innovation for new exploration methods, backed by some of the most successful investors in the world.”
(Adapted from Investing.com)