Shares in Bluebird Mining Ventures (LSE:BMV) fell 43% on Tuesday after the company said a key South Korean permitting request had been rejected, forcing a pause in joint venture activity and prompting a broader review of its strategy in the country.
The decision by the Board of Audit and Inspection blocks the company’s Mountain Temporary Use Permit for its Kochang project.
Bluebird will now pursue an administrative lawsuit, a process expected to take up to eight months. Its lawyers argue the board’s decision lacks legal foundation, though there is no guarantee the appeal will succeed.
Meanwhile, the company has suspended its joint venture at Gubong due to a lack of community support and will reassess both projects in light of recent events.
Despite the setback, Bluebird retains full ownership of the Korean assets and says its low-cost base gives it room to respond. Focus will now shift to its more promising project in the Philippines.
The stock fell 0.24p to 0.33p, valuing the business at £2.3 million.