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LONDON (Alliance News) - Bluebird Merchant Ventures Ltd said Monday it raised GBP436,500 through a 19.4 million discounted share placing, allowing the company to advance its South Korean gold projects.
The firm placed 11.1 million shares at 2.25 pence each, amounting to GBP250,000. A further GBP186,500 was raised through the issue of another 8.3 million shares at the same price to Chief Executive Officer Colin Patterson, Chief Operating Officer Charles Barclay, and Executive Director Aidan Bishop.
Bluebird Merchant Ventures were trading 12% lower at 2.43 pence on Monday.
The old gold mine reopening firm also appointed SVS Securities as joint broker for the firm. The appointment is anticipated to enable the company to reach a "wider base" of potential shareholders.
Bluebird plans to use the funds raised to advance the pre-construction phase of the South Korean gold projects, and also complete more detailed design work required for the construction phase.
The company aims for first gold pour in the fourth quarter of 2019, with the aim of increasing to 100,000 ounces of gold per year over a five year period once gold production commences.
Agreement has also been reached with the local landowner at Kochang for permissions to use the land outside the main adit entrance. This deal is regarded "strong indication" for the local approval for reopening the mine.
The company is still awaiting to receive a grant from the South Korean government for the underground drilling campaign which is due at the end of this month, though the company is optimistic about receiving approval.
Colin Patterson, CEO, said: "The level of local and government support for the reopening of the mines is very encouraging. Moving to the next phase of the project is key for Bluebird as we advance towards production and achieving first gold pour."