Bluebird Merchant Ventures Ltd / EPIC: BMV.L / Market: FTSE / Sector: Mining
07 May 2024
Bluebird Merchant Ventures Ltd
('Bluebird' or 'the Company')
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
Overview:
· Staged
· Agreement provides Bluebird with a free carry to production at Gubong, previously
· 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
· Evaluating a similar JV agreement to develop the Kochang Gold and Silver Mine in
Bluebird CEO Colin Patterson said, "This
"In
Details
Gubong is the larger of two 100% owned gold mining projects in
Under the terms of the Agreement, the South Korean's will form an SPV for the investment that will facilitate Gubong's development, investing up to
The Farm-out is over three stages with milestones needed to be achieved for the grant of equity in the JV. In the first and second stages, the JV will aim to obtain the relevant permits relating to bringing Gubong back into production (such as the Mountain Temporary Use Permit - MTUP) and once received prepare a Development Report, which details the planned development of taking Gubong into production. In the third stage, the JV will execute this report and carry out other exploration and production related activities including but not limited to sampling, drilling, trenching, dewatering, permitting, mapping, surveys, technical studies (including the Development Report, environmental studies, acquiring land, feasibility studies and/or studies of resources and reserves) and governmental or local stakeholder liaison.
The expenditure milestones by the investor giving a total of 60% of the Project are as follows:
· Stage 1 Shares:
· Stage 2 Shares:
· Stage 3 Shares:
The investor can also elect to fast-track expenditure at its discretion.
Bluebird shall not be required to contribute to the costs of the JV/Gubong development up to the completion of Stage 3, providing the Company with a free carry to production.
Both parties realise the potential of Gubong with the Farm-Out representing a major endorsement of the Project's potential and underpins the joint belief that the relevant permits will be obtained, and that the mine has strong potential to be a bought back into production. The value of Gubong and the Kochang Gold and Silver mine, the smaller of the Company's South Korean projects, was highlighted in a Scoping Study, which included a post-tax NPV of
**ENDS**
For further information please visit https://bluebirdmv.com or contact:
Aidan Bishop Bluebird Merchant Ventures Ltd Email: aidan@bluebirmv.com
Nick Emerson SI Capital Tel: 01483413500
About Bluebird
Bluebird Merchant Ventures Ltd (BMV.L) is a
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 several 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
Additionally, the Company has the highly prospective Batangas Gold Exploration Project in
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