Bluebird Merchant Ventures Limited Acquisition of 100% of Batangas Gold Project (7961Q)
December 02 2016 - 1:22AM
UK Regulatory
TIDMBMV
RNS Number : 7961Q
Bluebird Merchant Ventures Limited
02 December 2016
02 December 2016
Bluebird Merchant Ventures LTD
(the "Company" or "Bluebird")
Bluebird acquires 100% of the Batangas Gold Project
Bluebird Merchant Ventures (EPIC: BMV), the Philippine focused
natural resources development company is pleased to announce the
acquisition of the Batangas Gold Project (the "Project") for a
consideration of 1.25 million Bluebird shares. Having previously
held a 25% stake, the acquisition will give Bluebird sole ownership
of the Project which has an established JORC resource of 445,000 oz
of gold.
-- Acquires 100% for consideration of 1% royalty and issuance of 1.25m Bluebird shares
-- Pre-Feasibility Study announced on 21(st) June 2016
-- Maiden Ore Reserve declared on 21(st) June 2016 of 128,000oz
of Gold (including gold equivalent) including 100,000oz at 4.2 g/t
Au
-- Available 320,000 oz of majority JORC Inferred Resources
remains available for future conversion
-- Bluebird also acquires over $20million of tax losses
The Company previously owned a 25% stake in Red Mountain Mining
Singapore Ltd (RMMS) which in turn owned 100% of Philippine
registered MRL Gold Inc. Bluebird will return its 25% stake in RMMS
to ASX listed Red Mountain Mining (RMX) and RMMS will transfer its
100% stake in MRL Gold Inc to Bluebird. As acknowledged by RMX it
is extremely challenging for foreign-based explorers to develop
their projects. As a Philippine based company Bluebird is confident
that it is uniquely positioned to develop the Project.
In consideration for the acquisition, ASX listed Red Mountain
Mining (RMX) will be issued 1.25million Bluebird shares and will
also be entitled to receive a 1% net smelter royalty upon
commencement of production.
The acquisition represents a significant improvement in terms as
previously the Company had the Option to increase its 25% stake to
50.1% in RMMS by making further project investments of
US$1.7million.
On 21 June 2016 RMX declared a Maiden Ore Reserve of 128,000 oz
of Gold (including silver credits) which included 100,000 oz at
4.2g/t Au along with a Pre-Feasibility Study that showed the
project would produce a free cash flow (after capital costs) of
A$46million based on the Maiden Ore Reserve. The project has an
additional 320,000oz of majority JORC Inferred Resources that are
available for future conversion. The total historical spend on the
Batangas Gold Project has been more than USD 20million, which can
be applied as tax losses to the project.
Whilst there has been uncertainty in the mining industry in the
Philippines over the past six months which has seen a mining audit
undertaken of operating mines that resulted in the recommendation
for the suspension of over 20 mines the Company is not aware of any
mines that have ceased production. The Company is in dialogue with
prospective local partners that would manage the permitting process
and expects to update the market in due course.
The Company believes that the outlook for Philippine mining
projects is a lot brighter than it was six months ago. Bluebird's
key management are all located in the Philippines having experience
of both bringing gold projects into production and operating gold
mines in Asia including in the Philippines, making it uniquely
positioned to understand the local culture and environment.
The Company plans to undertake a thorough review of the Project
in the short term and in particular will give careful attention to
the environmental aspects. We fully support the Philippines Chamber
of Mine's drive for Responsible Mining for both the local
communities and the environment.
Bluebird CEO, Charles Barclay commented:
"We are delighted to announce the acquisition of the whole of
the Batangas project. Notwithstanding the current mining climate in
the Philippines, we believe that we will be able to progress the
project through to production with the assistance of local partners
who understand the opportunities that the establishment of a mine
will have for all stakeholders. Whilst the agreement to proceed
with construction may still take some time, the asset will continue
to represent considerable value to our shareholders."
Enquiries:
Bluebird Merchant Ventures
Ltd +63 917 8615 604
Charles Barclay, CEO
Walbrook PR Limited +44 (0)207 933 8783
Gary Middleton / Nick
Rome
This information is provided by RNS
The company news service from the London Stock Exchange
END
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