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Bluebird Merchant Ventures Ltd
('Bluebird' or 'the Company')
US$5 Million Farm-Out Agreement for Gubong Gold Project in South Korea
A Transformative Free Carry Structure to Advance c.1.3m oz High Grade Gold Mine to Production
Bluebird Merchant Ventures Ltd, a gold company primarily focused on bringing historic mines back into production, is delighted to announce that it has signed a US$5 million Farm-out Agreement for its high grade Gubong Gold Project ('Gubong' or 'the Project') in South Korea ('the Agreement' or 'Farm-out').
Overview:
· Staged US$5 million investment by a consortium of South Korean businessman ('the consortium') to gain up to 60% of Joint Venture company ('JV') established to develop Gubong to production.
· Agreement provides Bluebird with a free carry to production at Gubong, previously South Korea's second largest gold mine.
· Agreement highlights the belief by both parties that Gubong's c.1.3Moz Au can be advanced to production.
· The consortium will provide JV management and finance and as well as corporate and planning expertise at local, district and governmental levels.
· Bluebird technical services chargeable to the JV at market rates
· JV model successfully implemented in the Philippines where the Batangas Gold Project ('Batangas') is being advanced towards production with an EIS Study in progress (US$2 million investment).
· Evaluating a similar JV agreement to develop the Kochang Gold and Silver Mine in South Korea.
Bluebird CEO Colin Patterson said, "This US$5 million investment is fantastic news for Bluebird on multiple levels as we look to develop the high grade Gubong gold mine. We have been working informally with our South Korean partners over the last year to find the optimal development path for Gubong and this agreement means we have a free carry on the Project to production. We believe that our partner's willingness to enter into a formal agreement and invest significant capital, currently more than our market cap, emphasises that the right path has been identified and that together we can bring Gubong into production. Importantly, being South Korean nationals, its team better understand the local, district and national geo-political environment and can ensure all stakeholders are supportive while we will continue to provide the technical knowledge to drive value.
"In the Philippines, we've found the JV model to be the best fit, reducing risk and lessening our dependence on capital markets for value delivery. Our recent investment secures a free carry on the Gubong and Batangas high-grade gold projects, representing a capital commitment of around US$7 million. With promising long-term gold fundamentals, we look forward to providing regular updates on our progress and creating value for all involved."
Up +35% now.
Today's new RNS for BMV can be viewed in the link.
BMV is sitting on $3b of (very) high-grade gold, now has funding, and is getting ready to dig it up. Their Korean gold and silver mines have an NPV around £180m. Current marcap of BMV today is around £6m...
https://www.londonstockexchange.com/news-article/BMV/us-5-million-farm-out-agreement-for-gubong-project/16456050
Yes, just started looking at BMV. Read a few RNSs. BOD seem committed to shareholders. Hope to join you all later today or tomorrow when I have some funds available. GLA.
Well it still doesn't show as a red dot on LSE, they are crap! Some are probably interested but can't see a reason why it would be 28% up if they cant see a RNS.
Theres about 30x more amount of buys than sells, and really should be much higher, especially after those 2 x £42,000 buys, and a few other large buys.
Totally agree 4kanldes and for BMV to retain 40% on a free carry is an excellent result
Agreed. The news looks transformational for BMV. Shaking it from its slumber.
IMO this is the best news from BMV in the 7 or so years that I have been following the company.
The local investors would not be stumping up the cash if they were in any doubt that the necessary permitting, etc would be achievable and that a viable mining operation would not result from their investment.
The market has not yet fully woken-up to the de-risked value here. Market cap £6m. Simple maths.
GLA.
£85K and 0.85 paid - I think they got a good price frankly
In fine voice (certainly better than my typing!)
BMV team is fine voice this morning
https://twitter.com/bluebirdIR/status/1787746208301121913
2x 5 million buys,nice
Good initial market reaction - still so much more to come though!
Thanks jyee - missed that detail - more good news to come then hopefully.
In the rns
· Evaluating a similar JV agreement to develop the Kochang Gold and Silver Mine in South Korea.
My initial reaction is that this is great news. Serious money being brought into play and we will retain 40% on a free carry. Local expertise and money will no doubt unlock doors that the team were struggling to open. The RNS contains a reminder of the numbers in the scoping study and of course the present POG. The only thing missing for me is any expectation of timeline but we have already waited a long time for a positive development and this is a very positive outcome, so I can be patient a little while longer. Could it be the template for Kochang in the future I wonder? One step at a time.
Lets see how the market reacts...
ATB
I hear ya Jersey! Not much further on than we were 5 years ago! I’m still optimistic that one day this will come good. Hopefully there’ll be little dilution and gold prices keep rising until that happens too, but time will tell I guess.
I have been here for a few years now. Disappointed at the slow progress to date. Lots of potential but no indication on timescales. Long term hold and hope for me.
Here's the correct vid
https://www.proactiveinvestors.co.uk/companies/news/1045078/bluebird-merchant-ventures-advancing-gold-mines-in-the-philippines-and-south-korea-1045078.html
Gold at ATH and looking good for any number up to $2700 in 2024 but even if it just stays at 2K the costs involved in Korea are so low.
GLA
Interesting part was that unlike the Batangas agreement, this will be a JV upto first production.
This interview comment interesting,
It’s a local business man with diverse business interests.
Any clues to who he is, thinking as JV partner is an individual - if it’s going to happen it will get signed off quickly, let’s await the terms of the agreement, though thinking will be positive and we will see things moving in the right direction.
How much do you think Batangas alone worth any ideas?
@Capt_kurt Yeah he said something else in the interview as well that definitely gave off that aspect... AB: "I think as well I mean the MTUPs Of course they are important but it's not binary to say oh if you don't get them it's all over that's not really true because we've already got mining rights"
I've followed this since it exploded on HL at 4p... brought a bit and left but still kept my eye on it... then came back heavy last year cause it looks good and it still looks good! I suspect it is politically difficult now which is why I'd prefer a JV with a Korean Investor. So truth be told I prefer this news to any attempted dilution...
DYOR IMO, my avg price 0.08
Yes, agree, interview was open and informative, defo worth a 2nd listen, some interesting points about potential of Kochang also being farmed out with a JV local firm.
All three projects are substantial in size, only need one to start mining and we are sitting on a GOLD MINE.
Good interview. Batangas alone is worth the current market cap. Anyone that’s been involved in submitting a planning application knows how slow and frustrating the process is, so I’m not surprised at any delays.