By Jaime Llinares Taboada

Shares in Bluejay Mining PLC rose Tuesday after the company said it has entered into an earn-in agreement with Rio Tinto PLC for its Enonkoski nickel project in Finland.

Under the agreement, Rio Tinto may acquire up to a 75% interest in Enonkoski by funding $20.0 million of project expenditure, Bluejay said. The agreement is divided into three stages. In stage one, Rio Tinto can take a 51% stake by spending $5.0 million by November 2023.

Shares in Bluejay at 1143 GMT were up 1 pence, or 10%, at 11 pence.

"This belt has demonstrable nickel occurrences and past production, and it's a testament to the project that we have attracted a blue-chip miner at Enonkoski," Chief Executive Rod McIllree said.

Bluejay also said it would pay 100,000 pounds ($131,640) in cash and GBP100,000 in shares to Magnus Minerals Ltd. to settle historical royalties arrangements related to Enonkoski.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

November 10, 2020 07:10 ET (12:10 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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