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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
In the rns
· Evaluating a similar JV agreement to develop the Kochang Gold and Silver Mine in South Korea.
Thanks jyee - missed that detail - more good news to come then hopefully.
Good initial market reaction - still so much more to come though!
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.
Agreed. The news looks transformational for BMV. Shaking it from its slumber.
Totally agree 4kanldes and for BMV to retain 40% on a free carry is an excellent result
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.
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.
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
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 +44% now. This one looks ready to blow.
· No Funding Required
The consortium will provide JV management and finance and as well as corporate and planning expertise at local, district and governmental levels.
Up +50% now. Top of the leaderboard. Looks ready to leap over 1p. Chart going parabolic.
Very difficult to buy in any volume.
WOW 250 MIL TRADE!!!! IN Play too.
this is going to fly through 1p now that's cleared.
25 mil apologies
In terms of the chart - look at where we have been in the past and the potential here on a free carry - nothing guaranteed of course but that RNS is for a large chunk of change from a local source - this has take a while to put together and big money with big confidence and a big price of an appreciating commodity.
Just look at the facts and decide for yourselves.
Price ticking up to 1p on the Ask.
Yup free carry being the relevant words here!
52 week high 1.5 last may. Hopefully will beat this today
Maybe or it might take a few days - people sometimes get spooked at large % increases bt frankly if they do their research, the only reason the % are great at the moment, is that the SP fell to such low levels and for understandable reasons given the lack of progress. Clearly progress was being made in the background though - we just didn't know it!
Transformational news today frankly but don't take my word for it - DYOR
FARM OUT COMPLETE 5M!!! and not evenflagged on this site, under teh radar we fly.
https://www.londonstockexchange.com/news-article/BMV/us-5-million-farm-out-agreement-for-gubong-project/16456050
Unable to get quote for large amounts