TIDMBMV
RNS Number : 1929K
Bluebird Merchant Ventures Limited
23 August 2023
Bluebird Merchant Ventures Ltd / EPIC: BMV.L / Market: FTSE /
Sector: Mining
23 August 2023
Bluebird Merchant Ventures Ltd ('Bluebird' or 'the Company')
Catalyse Capital agrees to buy Southern Gold's shareholding in
Bluebird
Bluebird Merchant Ventures Ltd, a gold company primarily focused
on bringing historic mines back into production, is pleased to
announce that Catalyse Capital Ltd ('Catalyse'), a long running and
supportive shareholder of Bluebird, has agreed to acquire Southern
Gold Limited's ('Southern Gold') 122.5 million shares in the
Company ('the Agreement'). The Board believes that the share
purchase by Catalyse, that recognises the true potential of the
Company's South Korean and Filipino gold projects, will remove a
significant perceived 'overhang' in the trading of Bluebird's
shares and allow investors to focus on the inherent value of the
three-project portfolio.
Under the terms of the Agreement, Catalyse has agreed to
purchase an initial 22.5 million shares in Bluebird at 0.55p per
share with settlement due on the 28 August 2023. Southern Gold's
remaining 100 million share will be purchased by Catalyse in four
tranches of 25 million shares each, to be settled monthly from
September to December 2023. Each of the four tranches will be
priced at 75% of each month's VWAP for Bluebird's shares with a
floor price of 0.4 pence.
Southern Gold's existing shareholding of 122.5 million shares
represents 17.8% of the issued capital of Bluebird. They initially
received the shareholding when Bluebird purchased the Gubong and
Kochang projects, which was satisfied through the issue of 200
million shares in Bluebird at a price of 3.6p per share. Southern
Gold has been aggressively selling down its equity position in
Bluebird as it implements its well documented change in strategy,
which is now focused on the commercialisation of its battery
technologies and critical minerals exploration in South Korea,
rather than gold. It has already sold 26.25 million shares in
Bluebird.
The Board continues to focus on attaining its Mountain Temporary
Use Permits in South Korea. The Company awaits the decision of the
Board of Audit and Inspection regarding Kochang and is progressing
with an influential strategic partner regarding Gubong.
Furthermore, its JV partner in the Philippines continues to advance
the Batangas Gold Project ('Batangas') which has received the
Certificate of Approval from the Mines and Geosciences Bureau for
its Two-Year Community Development Plan and is now finalising a
drill programme for the next phase of development aimed at bringing
the high-grade Lobo area into production.
Bluebird CEO Colin Patterson said, "Catalyse has been a
long-standing supporter of Bluebird and we welcome this staged
transaction to exit Southern Gold from our register. With three
high grade gold projects, including an estimated 1.5m oz Au in
South Korea and close to 450,000 oz Au in the Philippines, a free
carry to a production decision at Batangas, supportive local
partners, heavily invested management, cash, and no debt, Catalyse
recognises the potential of the Company.
"Southern Gold's selling, caused by their strategic shift away
from gold and into critical metals, has undoubtedly affected our
share price, and to ameliorate the Southern Gold situation is good
news. The Board and investors can now focus on the positives of the
business, the securing of the Mountain Temporary Use Permits for
both the Gubong and Kochang historic gold mines and the progress
being made by our Philippine JV partner at Batangas where it is
finalising the eagerly awaited drill plan, a campaign which we
believe will further quantify the project's excellent
potential."
Catalyse Capital said, "As a large holder of stock in Bluebird
Merchant Ventures over the last 3 years and a previous supplier of
material capital to protect equity investors, our interests are in
sync with current shareholders and the management of Bluebird, who
themselves are large holders. By taking out Southern Gold we hope
that the market will properly value Bluebirds fantastic assets in
Korea and the Philippines, which we eagerly await news on."
This announcement contains inside information for the purposes
of article 7 of the market abuse regulation EU 596/2014
("MAR").
**ENDS**
For further information please visit https://bluebirdmv.com or
contact:
Colin Patterson Bluebird Merchant Ventures Ltd Email: colin@bluebirdmv.com
Nick Emmerson SI Capital Tel: 01483413500
About Bluebird:
Bluebird Merchant Ventures Ltd (BMV.L) is a London listed South
Korea-focused resources company centred on bringing historically
producing gold mines back into production. The Company, led by a
team of proven mine rehabilitation experts, currently has two 100%
owned licensed high grade narrow vein mining projects, the Kochang
Gold and Silver Project ('Kochang') and the Gubong Gold Project
('Gubong'), which each have a defined route to low cost/ low capex
production with a cumulative target of producing 100,000 oz + Au
per annum.
The management team has invested cUS$2 million personally into
the Company and believe, following analysis of historic production
and exploration data, as well as extensive sampling, geological,
geophysical, and engineering studies, there is potential for in
excess of 1.5 million oz of mineable gold in its Korean projects
alone.
Kochang is an epithermal vein deposit with parallel vertical ore
bodies covering 8.3 sq km that reportedly produced 110,000 oz of
gold and 5.9 million oz of silver between 1961 and 1975. Consisting
of a gold and silver mine, there are currently four main veins and
a number of parallel subsidiary veins vein which have been
identified, as well as a newly identified cross-cutting vein.
Historic drilling indicates the veins continue to depth below the
current 150m mine and mapping shows the veins on surface providing
potential above and below the old workings. The veins extend to the
NE providing a strike length of 2.5km with 600m between the two
mines not exploited. There is potential to expand operations to the
southwest/northeast and to depth, as well as exploit the already
mined areas. The total resource potential is between 550,000 and
700,000 tonnes, with a range of grades between 5.2 g/t to 6.6 g/t
gold, and 27.3 g/t to 34.8 g/t silver. Following the granting of a
Mountain Use permit, there is an estimated 6-to-9-month development
time to trial mining.
Gubong, which was historically the second largest gold mine in
South Korea has 9 granted tenements covering c.25 sq km. Gubong is
moderately dipping with 9 veins extending 500m below surface and
known to extend at least a further 250m. However, the production
opportunity for Bluebird prior to looking at deepening the mine is
the 25 levels already developed with all the remnants and unmined
areas left by the original miners. The 25 levels extend over 120km
in total length which indicates the size of the opportunity. The
Korea Resources Corporation ('KORES') estimated 2.34M tonnes at
some 7.3g/t Au garnered from 57 drill holes over 17,715.3 metres.
With additional sampling, mapping, pit modelling and grade
analysis, plus the fact that Gubong is an orogenic deposit, which
typically have a depth of 2km compared to the current depth of
500m, the Board believe it has a geological potential of 1 million
+ oz Au in-situ, plus an estimated additional 300,000 oz Au from
satellite ore bodies.
Additionally, the Company has the highly prospective Batangas
Gold Exploration Project in the Philippines, where it has an
agreement with a Philippine company, whose owners have decades of
experience in mining, to develop the Project. The JV covers the
entire Batangas Project area, which has a current JORC compliant
resource of 440,000 ounces, including a maiden ore reserve of
128,000 ounces (including silver credits). Exploration expenditure
to the tune of c.$20m has already been invested. Work is focused on
completing Exploration and Environmental Work Programmes initially
targeting the high-grade Lobo area, although there is excellent
exploration potential across the licence with high-grade targets
already identified and 14km of identified mineralised structures.
The staged agreement is based on the JV partner achieving defined
development goals and provides Bluebird with a free carry on the
development of Batangas with a view to advancing to
construction.
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