Bluebird Merchant Ventures (EPIC: BMV), the Asian focused resource development group is pleased to announce that the execution of the formal Joint Venture Agreement with Southern Gold Ltd (“Southern Gold”) for the Kochang mine was signed on 12 June 2018.
- Signing of 50:50 Joint Venture Agreement with Southern Gold for the Kochang mine
- Feasibility report expected to be completed in September 2018 at Kochang
- Bluebird to be the Joint Venture Operator
- Target to become a 100,000 oz per year gold producer within five years
- First gold expected in Q4 2019
Bluebird has commenced the required farm-in activities of the Kochang Joint Venture Agreement with Southern Gold. As previously announced on 12 February 2018, the Company is required to spend USD 500,000 towards a feasibility study to reopen the gold and silver mine as well as to complete a Placing of AUD 250,000 in Southern Gold. The expenditure commitment is very close to being met and the Company expects to complete the Placing in Southern Gold in due course. The feasibility report on Kochang is also planned to be completed in September 2018. Thereafter the costs will be shared 50:50 with Southern Gold and Bluebird will be the Joint Venture Operator.
Progress continues at Gubong where the report on feasibility to reopen the mine will be completed on schedule in July. The Company looks forward to presenting both the Gubong and Kochang reports in due course which will include a clear path to reopening the mines and producing gold. These will have material positive impacts on the future of the Company.
Metallurgy work continues at Gubong and further to previous announcements the Company expects to update the market next week with results from ongoing work.
Colin Patterson, CEO, commented:
“The execution of this agreement represents another major milestone for Bluebird. We now look forward to completing the report on feasibility and to working together with our partners, Southern Gold, as we progress towards reopening the Kochang Mine.”
“We have made good progress since taking on the South Korean projects and we now have two mines that we expect to bring into production. Bluebird is targeting to become a 100,000 oz per year gold producer within five years from commencing operations.”
“We are currently completing the Gubong report on feasibility which is on target to be completed in July while the Kochang feasibility is progressing well. I fully expect that Bluebird will be pouring its first gold the last quarter of 2019.”
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 (“MAR”)