KoBold Metals signs agreement to explore for minerals in Greenland
KoBold Metals, a mineral exploration company that uses artificial intelligence and machine learning to explore for critical minerals such as cobalt and nickel, has inked an agreement with Bluejay Mining to search for minerals in Greenland.
KoBold will pay $15 million in exploration funding for the Disko-Nuussuaq project on Greenland's west coast in exchange for a 51 percent stake in the project, Bluejay said in a statement.
Shares in BlueJay traded 26 percent higher on the news.
The Greenland license holds metals such as nickel, copper, cobalt and platinum and the funding will cover evaluation and initial drilling.
KoBold is owned by Breakthrough Energy Ventures, 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.
Other KoBold investors include Silicon Valley venture capital fund Andreessen Horowitz and Norwegian state-controlled energy company Equinor.
BlueJay said previous studies found the area in western Greenland has similarities to the geology of Russia's Norilsk region, a main producer of nickel and palladium.
"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."