18 March 2019
Bluebird Merchant Ventures Ltd
(the "Company" or "Bluebird")
Successful Placing of 19,400,000 Shares at 2.25p to Advance South Korean Gold Projects
Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group, is pleased to announce that it has successfully placed all of the available headroom of 19,400,000 shares for a total of GBP 436,500. This enables the South Korean gold projects to advance and finalise the next phase of the project which is the pre-construction stage.
· Successful placement of 19,400,000 shares with management participation
· Projects advance to the pre-production phase
· Land-owner agreement received at Kochang and Gubong
SVS Securities placed 11,111,111 shares amounting to GBP 250,000 and Directors, Colin Patterson, Charles Barclay and Aidan Bishop contributed GBP 186,500 resulting in the issuance of a further 8,288,888 shares. SVS Securities have also been appointed as a Joint Broker to the Company, which is expected to enable the Company to reach a wider base of potential shareholders.
The funding will be used to advance the pre-construction phase of the South Korean gold projects and to complete the more detailed design work required for the construction phase. Bluebird is targeting first gold pour in the fourth quarter of 2019. Once gold production commences, it is planned to increase production to 100,000 oz of gold per year over a five year period.
An agreement has also been reached with the local landowner at Kochang for use of the land outside the main adit entrance. This agreement is regarded as a strong indication of local approval for the reopening of the mine and augments the application for the 'permit to develop the Kochang mine. The Company has the approval from the Mines Safety Department to carry out refurbishment works in the adit which is expected to commence in April, prior to the commencement of the definition drilling underground thereafter. A similar agreement is already in place at the Gubong mine, which also demonstrates support for reopening the mine.
The Company is optimistic that the grant from the South Korean government for the underground drilling campaign will be successfully given during this month. In addition, as previously announced, the Company is expecting to receive feedback from its application for the 'permit to develop' the Gubong mine around 23 March 2019. The Company announced on 12 March 2019 the application for the 'permit to develop' the Kochang mine has been made and will be in the public domain for forty days after which the Company expects to receive a response. Once the applications are successful it will enable the mines to enter the production phase.
The Company expects to update the market in due course as further progress is made in South Korea.
Colin Patterson, CEO, commented:
"The Placing enables the company to progress and advance towards the goal of reopening the Gubong and Kochang mines. 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. It is really exciting that Bluebird it as the heart of bringing back gold production to South Korea which is proving to be one of the most welcoming mining jurisdictions that I have ever worked in."
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR")
Bluebird Merchant Ventures Ltd
+44 (0) 7797 859986
Jonathan Morley-Kirk, Non-Executive Chairman
SP Angel Corporate Finance LLP
Smaller Company Capital Ltd
Rupert Williams/Jeremy Woodgate
+ 44 (0) 20 3470 0470
+44 (0) 20 3651 2910
+44 (0) 20 7138 3204
Tim Blythe / Camilla Horsfall / Julia Tilley
Notes to Editors
The Gubong mine was once the second largest producing gold mine in South Korea until its closure in 1971 when gold prices were US$40 per ounce. The mine consists of nine shallow dipping stacked veins. Although production was mainly from vein number six, five other veins were mined from 1928 until its closure. Over 17,000 metres of drilling was carried out over the years and there are over 120 kilometres of existing underground development.
The Kochang mine is a gold-silver mine that operated between 1928 and 1975 and produced over five million ounces of silver at over 1000 g/t and 110,000 ounces of gold at 19.6 g/t. This gold production was mainly derived from the three main veins at the North East end of the "Gold Mine" part of Kochang, with the majority of the silver production from the "Silver Mine" some 2.5 kilometres to the south west. The mine closed in 1975 when the gold price was USD 140 per ounce. Today the mine consists of three steeply dipping veins. BMV has opened up three kilometres of original development, taken over 400 samples and has confirmed process viability by carrying out initial metallurgical test work.
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