Bluebird signs Farm-Out Agreement for South Korea gold project

Overview:

• Staged US$5 million investment by a consortium of South Korean businessman to gain up to 60% of Joint Venture company (JV) established to develop Gubong to production.
• Agreement provides Bluebird with a free carry to production at Gubong, previously South Korea’s second largest gold mine.
• Agreement highlights the belief by both parties that Gubong’s approx. 1.3 million oz Au can be advanced to production.
• The consortium will provide JV management and finance, as well as corporate and planning expertise at local, district and governmental levels.
• Bluebird technical services chargeable to the JV at market rates.
• JV model successfully implemented in the Philippines where the Batangas Gold Project is being advanced towards production with an EIS Study in progress (US$2 million investment).
• Evaluating a similar JV agreement to develop the Kochang Gold and Silver Mine in South Korea.

Bluebird CEO Colin Patterson said, “This US$5 million investment is fantastic news for Bluebird on multiple levels as we look to develop the high grade Gubong gold mine. We have been working informally with our South Korean partners over the last year to find the optimal development path for Gubong and this agreement means we have a free carry on the Project to production. We believe that our partner’s willingness to enter into a formal agreement and invest significant capital, currently more than our market cap, emphasises that the right path has been identified and that together we can bring Gubong into production. Importantly, being South Korean nationals, its team better understand the local, district and national geo-political environment and can ensure all stakeholders are supportive while we will continue to provide the technical knowledge to drive value.

“In the Philippines, we’ve found the JV model to be the best fit, reducing risk and lessening our dependence on capital markets for value delivery. Our recent investment secures a free carry on the Gubong and Batangas high-grade gold projects, representing a capital commitment of around US$7 million. With promising long-term gold fundamentals, we look forward to providing regular updates on our progress and creating value for all involved.”

Read the article online at: https://www.globalminingreview.com/mining/08052024/bluebird-signs-farm-out-agreement-for-south-korea-gold-project/