Bluebird Merchant Ventures (EPIC: BMV) is pleased to announce an update regarding the funding of the South Korea projects.
The US$500,000 funding commitment for the Taechang gold/silver mine has been fully committed by Directors, management and key shareholders. The funding was concluded in the form of a Loan Note with a 6-month term from the initial drawdown. The Loan Notes carry an 8% per annum coupon that is paid in the form of shares at the market price at maturity. Each unit of US$50,000 of the Loan Note carries 250,000 warrants with an exercise price of 2p and a 12-month expiration date.
Taechang was a high grade producing mine which was closed around the 1980’s as the price of gold was low. Accesses to the underground workings were not previously sealed off and are mostly open thus making it an ideal target for early production.
The US$500,000 funding for the Gubong gold/silver mine only needs to be in place around October/November 2017 and management has the capacity to fully fund this as well on similar terms.
The Gubong mine was once the second largest gold mine in South Korea and operated from 1908 until the early 1970’s when the mine was closed due to a very low gold price. Six veins were mined and there is extensive infrastructure such as a major adit, two vertical shafts, incline shafts (all of which have been previously sealed off to prevent unauthorised access) and a few hundred kilometres of underground development. The mine area, which is 4 square kilometres in size, is recognised as being in one of the 10 major metallogenic provinces in Korea. Mineralisation is recognised over 14 square kilometres
Colin Patterson, CEO, commented, “Refurbishing the Taechang and Gubong mines has the potential to transform the value of Company. As such management did not want to unnecessarily dilute shareholders by conducting any Placing at this time as we do not believe the current share price reflects reasonable value for the South Korean projects.”