Bluebird Raises £1.215 Million To Fund South Korean Gold Mine Projects

Bluebird Merchant Ventures Ltd, a gold company primarily focused on bringing historic mines back into production, has raised £1,215,000 through SI Capital via a placing and subscription for 60,750,000 New Ordinary Shares (‘the Placing Shares’) at 2 pence per share (‘the Placing’) to fully fund proof-of-concept production at its Kochang Gold and Silver Mine in South Korea (‘Kochang’), expand the in-country team to accelerate developments at both of its mines, and for general working capital.

The Company is focussed on restoring Kochang and the Gubong Gold Mine (‘Gubong’) back into production. Ahead of restoring Gubong, the larger of the two mines, back into production with a medium-term target of c.60Koz Au pa, the Company aims to undertake relatively inexpensive proof-of-concept production at Kochang. This will provide confidence in the key parameters of the mining operation including grade, recovery, production and processing, and community and government support.  Once complete, production will be ramped up to an initial 5Koz Au pa and 12-15Koz Au pa thereafter. The Company estimates that the two mines have a potential cumulative +1.5Moz gold resource.

The next steps include the granting of a Temporary Mountain Use Permit (‘TMUP’), expected imminently, ordering and securing critical machinery, and ongoing negotiations with streaming partners and debt financiers for full mine development.

The funding follows the recent Scoping Study announcement (RNS 27.02.23) with headline figures of a post-tax NPV of US$181m, free cash of US$50m per annum and an IRR of 111%. This is based on a US$1,750 gold price for production from two operations with a cumulative c.400Ktpa VAT leach processing operation with a US$630 per oz All in Sustaining Cost (‘AISC’).

The Company is also pleased to announce that it has appointed SI Capital as its broker with immediate effect.  The Company looks forward to an on-going relationship with the SI team as it implements its development strategy to restore historic mines back into production and build shareholder value

Bluebird Merchant Ventures CEO Colin Patterson said, “We are delighted to have raised £1.215 million to fund the proof-of-concept mining at the Kochang Gold and Silver Mine and to prepare operations at Gubong.  The next 12 months is going to be extremely busy once we receive the Temporary Mountain Use Permit, which will allow operations to commence on the ground and head towards production.  The potential of our South Korean projects was highlighted in the recent Scoping Study, which reported a post-tax NPV of US$181m, free cash of US$50m per annum and an IRR of 111% and the AISC estimated at US$630.

“We also look forward to news from the Philippines, where we recently secured a Joint Venture with a local Philippine company with decades of experience in mining, to advance our high grade Batangas Gold Project.  Th JV agreement means we have a free carry on the project to mine construction allows us to focus on South Korea.”

“Finally, I would like to welcome new shareholders to the Company and look forward to working with SI Capital as we develop our projects and build shareholder value.”

Full Placing Details:

Bluebird is issuing a total of 60,750,000 new ordinary shares (the “Placing Shares”) at a price of 2.0 pence per share through a private placement to raise £1.215 million.

Pursuant to the Placing, the Company will also grant the placing participants with a warrant to subscribe for 1 New Ordinary Share in the capital of the Company for every 1 share subscribed in the placing, exercisable for a period of 3 year from Admission of the Placing shares at a price of 3.5 pence per ordinary share. The Company will also grant SI Capital with a warrant to subscribe for 1,215,000 shares exercisable with a 3 year life at an exercise price of 2.0 pence per ordinary share.

The Company is pleased to announce that in order to facilitate any conversion of warrants or loans in the short term, senior management, associated parties of Colin Patterson, Aidan Bishop and Momentum Resources, have pledged their collective holdings of c.200 million shares (“Pledged Share Pool”) for any warrant or loan conversions that cannot be met with the Company’s current headroom. The Company will publish a secondary prospectus to refresh headroom if and as soon as it is necessary and practicable, subject to approval by the FCA.  The Company will update the market with the required disclosures should any of the Pledged Share Pool be utilised.

Application will be made for the Placing Shares, which will rank pari passu with the existing Ordinary Shares in issue, to be admitted to trading on the Standard Listing Segment of the Main Market of the London Stock Exchange (“Admission”).  Admission is expected on or around 13 March 2023.

The Company’s total issued and voting share capital upon Admission will be 712,865,042 Ordinary Shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the securities of the Company.

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