Bluebird Merchant Ventures (LON:BMV) has completed a A$250,000 placing into Southern Gold Ltd. The placing was part of the requirements for Bluebird to meet the formal joint venture agreement on the Kochang gold and silver mine in South Korea.
WATCH: Bluebird Merchant Ventures moving forward with development of Gubong mine
The company has already commenced its farm-in activities on Kochang, but to finalise the partnership agreement with Southern Gold, Bluebird was required to place A$250,000 into Southern Gold and contribute a minimum of US$250,000 to produce a feasibility report into the reopening the Kochang mine.
The immediate focus for the company will now be to finalise the feasibility report in the coming weeks, which Bluebird expects will complete the company's capital expenditure requirements on the project.
Following the submission of the feasibility report to Southern Gold, capital expenditure costs will thereafter be shared 50:50 between the two partners, with Bluebird acting as the operator of the project. This conforms to the pattern set at the company’s Gubong joint venture.
"We are delighted to have almost completed our farm-in requirements for both Kochang and Gubong,” said Bluebird chief executive Colin Patterson.
"The Bluebird team has worked tirelessly over the past few months on progressing both these projects and as we approach the completion of the feasibility report on Kochang, we are confident that we remain on track to achieve our goal of first gold pour by the fourth quarter of 2019. We are very pleased with the formidable progress being made at both Kochang and Gubong and look forward to updating the market in due course."