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SAU’s CEO even said in the interview I posted a couple of weeks ago that their JV with us wasn’t even taken into consideration within their mcap and that it’s their other projects that their shareholders are more interested in. Personally, the more I’ve read up on SAU the last few months, the more it looks as though they couldn’t afford to bring this into production without severely effecting their other exploration work for a few years.
I can’t even see how people can say we’re over priced either. I’d be surprised if anyone can point to other stocks with an mcap of circa £20m, that are commencing gold production next year on a scale that will bring about 100k oz/annum within 5 years. As a comparison; KAT are about 12 months behind us in terms of production, yet only have 50% of 35k oz/annum, and they still have an mcap of £9m.
Only people de-ramping that are looking for a low entry would say this is overvalued.
Well said ConMan
I see on other BMV boards you have some trolls saying BMV is overvalued compared to SAU. BMV is not overvalued; SAU is undervalued. The reason they're undervalued? Due to their strategy. They aren't bothered about getting rock out the ground. BMV have been clear from day 1. They want gold out of the ground and they want revenues. They don't worry about the lack of JORC, why? Because gold is there, we know gold is there, and it was mined at a time when gold was a lot cheaper than it is now.
SAU aren't interested. They will continue to raise, continue to dilute and sell off assets when it makes no sense to do so. BMV are valued a lot higher than SAU because BMV shareholder know that revenues are only a short distance away. Go on to SAU forums and you'll see their morale compared to ours. I feel sorry for them, but they should've realised by now SAU's game.
We've waited a long time, although relative to other companies, it's actually been incredibly short for BMV to make some money. That time is now extremely close. We're currently looking at 100% of the JV, highly likely to be no/little dilution.
I'm very excited.
Nice little surprise this for a Monday morning.
It’s good to see the funding goes up to $20m if required. Considering we need much less than this to get things off the ground, hopefully we can use some of the excess when purchasing the 50% off SAU.
I agree ConMan. If we can somehow avoid dilution when purchasing their stake, the potential returns could be huge annually, far greater than the company would need. As you say, potentially some decent size dividends, which would ultimately sky rocket the share price as a result too.
I was concerned at first why SAU would sell-up their stake, but you only have to look at their balance sheet to realise why. They made a loss of $10m last year, $4m this year, have just had make a raise of $10m to carry on their exploration work. They desperately need cash, so hopefully we’re not looking at ridiculous figures in order to get their 50% stake.
Add in the bonus of Batangas getting Local Support ...
Indeed. Great news all!
Next up is the valuation of SAU stake in the JV. Get that at a good price and we're laughing!
Dividends in a few years could be massive given the number of shares in issue.
The BoD have negotiated a great deal here for shareholders. No dilution and repayment t come from production and commitment up to $20M. Looking extremely positive here.
ATB
Excellent start to the week.....
Bluebird Merchant Ventures (EPIC: BMV), the Korean focused gold development group is very pleased to announce a Funding Update with regards to the South Korean Projects.
Highlights:
• South Korean investors accelerate funding schedule
• First tranche of non-dilutive funding has been received
• Minimum funding commitment of USD 5 million, maximum funding commitment USD 20 million
• Funding in the form of a pre-payment for gold to be paid from production
The Company's funding partners in South Korea have accelerated their schedule of funding for the South Korean projects ahead of the completion of the process that will see Bluebird increase its stake from 50% to 100% in the Gubong and Kochang gold projects.
The Company is pleased to update shareholders that it has received the first tranche of funding that will enable progress on the ground in South Korea and for construction to commence. The funding is non-dilutive and is a straight pre-payment for gold with no interest. The Company will repay the debt funding in gold from production at a 20% discount to the gold price based on the gold price at the time of delivery. The agreement with its South Korean funding partners provides for a minimum commitment of USD 5 million and a maximum commitment of USD 20 million.
The Directors consider the funding to be highly advantageous to shareholders and as the funding schedule progresses it will result in the Company achieving gold production without the need for an equity placing to fund the construction phase.
The Company is pleased to report that the sale process with Southern Gold has taken a further step towards completion. Southern Gold have notified the Company that it has elected to go to the Institute of Arbitrators and Mediators Australia (IAMA) in order for an Independent Expert to appointed. The Expert must within 30 days of appointment determine the value.
Colin Patterson, CEO, commented:
"I am delighted that our South Korean funding partners have demonstrated such confidence in our gold projects to provide financing by way of a pre-payment for gold. We are eager to move forward to the construction phase and produce gold, at which point I believe that considerable value for shareholders will be generated."
Boom!