Gubong Update

“Progress following local JV formation”.

Bluebird Merchant Ventures Ltd, a gold project development company, is pleased to announce that yesterday it received formal notice from the Mining Registration Office, a division of the South Korean Mining of Trade, Industry and Energy (MOTIE) that the required spending commitments relating to the Gubong ‘Permit to Develop’, have been fulfilled and accepted.

The Permit to Develop is a permission that was first granted on 7 November 2019 and is associated with the Gubong 20-year Mining Right, which is valid from 2 September 2009 until 1 September 2029. Under the law, the Company now has a further three-year period to achieve Commercial Operation or make a further ‘Qualifying Investment’. Additionally, the Mining Right can be extended for a further 20-year period upon either Commercial Operations having commenced, or the appropriate next Qualifying Investments made.

With the new JV partner in place, who are providing Bluebird with a free carry to production, the Company believes that the ability to navigate the South Korean permitting environment and manage local community engagement is greatly enhanced. Gubong was South Korea’s second largest producing mine and has a potential resource of +1Moz Au in-situ, plus an estimated additional 300,000 oz Au from satellite ore bodies.

Bluebird CEO Colin Patterson said, “The extension of the Permit to Develop for Gubong means that we have maintained the licence integrity.  I believe the JV structure with our South Korean partners, in addition to it contributing US$5m in investment, importantly provides the Project with in-country gravitas, as their team better understands the local, district and national geo-political environment. Local knowledge is crucial to project development, as demonstrated by our structure in the Philippines where we are rapidly advancing the Batangas high grade gold project.”

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