Bluebird Merchant Ventures Limited Successful Placing of 19,400,000 Shares (0950T)
March 18 2019 - 2:00AM
UK Regulatory
TIDMBMV
RNS Number : 0950T
Bluebird Merchant Ventures Limited
18 March 2019
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.
Highlights:
-- 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")
Enquiries:
Bluebird Merchant Ventures Ltd +44 (0) 7797 859986
Jonathan Morley-Kirk, Non-Executive
Chairman
SP Angel Corporate Finance LLP
Ewan Leggat
Smaller Company Capital Ltd + 44 (0) 20 3470 0470
Rupert Williams/Jeremy Woodgate +44 (0) 20 3651 2910
Blytheweigh +44 (0) 20 7138 3204
Tim Blythe / Camilla Horsfall
/ Julia Tilley
www.bluebirdmv.com
@BluebirdIR
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IOEMMGMFLNVGLZM
(END) Dow Jones Newswires
March 18, 2019 03:00 ET (07:00 GMT)
Bluebird Merchant Ventures (LSE:BMV)
Historical Stock Chart
From Apr 2024 to May 2024
Bluebird Merchant Ventures (LSE:BMV)
Historical Stock Chart
From May 2023 to May 2024