Southern Gold Limited (ASX:SAU) (FRA:UH4) via its Singaporean subsidiary, International Gold Private Limited (IGPL) is in an incorporated joint venture with Bluebird Merchant Ventures Ltd (LON:BMV) at the at the Gubong and Kochang (Geochang) projects in the Republic of Korea.
Each party holds an equity interest of 50% in each joint venture and on 30 November 2020, BMV elected to acquire both of IGPL’s JV interests.
The price payable by BMV is US$9,945,000 (around AUD$12,915,000 at the current exchange rate of USD$0.77) and BMV had 60 days, or to 26 January 2021, to complete the payment.
Alternative agreement under consideration
As at commencement of business yesterday, 27 January 2021, no payment has been received by Southern Gold or IGPL - which is ready and willing to complete the sale and purchase of its joint venture interests.
On the 26 January 2021 BMV emailed the company a letter outlining, in general terms, alternative means by which the sale and purchase may be settled.
Southern Gold intends to consider these proposals and to maintain an open dialogue with BMV to see whether an acceptable agreement may be reached.