Reduced board to manage new free carry JV structure to develop gold mining operations
Bluebird Merchant Ventures Ltd, a gold company primarily focused on bringing historic mines back into production, is pleased to announce that it has restructured its Board of Directors following the implementation of its new free carry orientated joint venture (‘JV’) focussed business model.
Executive Director Charles Barclay and Non-executive Director Clive Sinclair-Poulton are stepping down with immediate effect. Jonathan Morley-Kirk remains as Non-executive Chairman while Colin Patterson will move to Non-executive Director. Aidan Bishop, who was instrumental in signing the JVs with the Company’s South Korean and Filipino partners, will move to interim CEO.
The Company has adopted a JV business model to mitigate project risks and reduce development obligations while retaining exposure to its high-grade gold assets. In this model, local partners contribute capital and local expertise, while Bluebird offers a deep knowledge that encompasses all aspects of mining. This structure guarantees that each asset follows its optimal development path.
In line with this, the Company has reduced its Board to better reflect its advisory/consultancy obligations to the JVs and lower its corporate overheads. Additionally, Bluebird aims to change its name whilst retaining its ticker; further details will be provided in the upcoming Notice of AGM.
In South Korea, the Gubong project, with an estimated 1.3 million ounces of gold, is being advanced to production with a consortium of South Korean businessmen investing US$5 million to acquire up to 60% ownership. In the Philippines, the Company has a JV with a local partner who brings decades of mining experience and is investing approximately US$2 million to secure 60% ownership of Batangas and provide Bluebird with a free carry to mine construction. The Board is currently exploring a similar structure for its Kochang Gold & Silver Project, also in South Korea, and hopes to provide further details soon.
Bluebird Executive Director and Interim CEO Aidan Bishop said, “I would like to start by thanking Charlie, who has spent five decades in the mining industry, for his dedication to Bluebird, and Clive, who has spent nigh on 50 years of active involvement in the City, for his invaluable contribution to the Company. Their corporate and technical experience has been instrumental in developing our exciting high-grade gold portfolio and we wish them every success in their future endeavours. I would also like to thank Colin for his unwavering stewardship and am delighted that he will continue to offer his technical insights in his new role as a Non-executive Director.
“We look forward to working with our JV partners to develop the Gubong and Batangas gold projects. The new structure of the project companies means that the local investors in each provide finance, which is a cumulative c. US$7 million, management and as well as corporate and planning expertise at local, district and governmental levels, while Bluebird provides billable consultancy and technical expertise. Accordingly, a slimline Board better reflects the input needed by Bluebird while enabling us to reduce our corporate overheads.
“We are already seeing positive outcomes from this new arrangement and aim to replicate the strategy at our second project in South Korea, Kochang. In this regard, our project manager, Graeme Fulton, a mining engineer with over 30 years of industry experience, and I met with our prospective partners last week and agreements are now in the final drafting stage.”