Bluebird raises funds to advance South Korean Projects

The funds raised will facilitate the completion of the application of the Temporary Mountain Use Permits (TMUP), which remains on track to be granted early in the New Year 2023, without utilising the equity call option facility available to the company with a floor price of 2p.

Additionally, the company has opened discussions with a streaming fund for the entire capital needed for the development of the high grade Kochang Gold and Silver Mine (Kochang). This would provide security of funding for Kochang without further equity dilution.

The TMUP remains an important milestone on the development of Bluebird’s South Korean mines. Its granting is the last major hurdle before the commencement of the proof-of-concept production at Kochang which will be followed by full production commencement targeting, initially approximately 10 000 oz Au per year. The company’s two projects have a cumulative production target of 75 000 – 100 000 oz Au per year, and an estimated non-JORC resource of in excess of 1.5 million oz Au.

Furthermore, the Board remains in legal drafting with a local partner who has strong credentials and experience in mining in the Philippines with regards to the Batangas Gold Project. The Board continues to be positive on these concluding in the near future.

Colin Patterson, Bluebird Merchant Ventures CEO, comments:

“We have chosen to widen the shareholder base and not use the Call option facility as we approach the granting of the TMUP, which according to our lawyers and permitting consultants, remains on track for early 2023. The progress made on the last trip to South Korea has built momentum and I am truly excited about the potential of our projects. We are looking at all financing structures for the company, and a streaming arrangement, whereby funds are repaid from gold produced in the future, allows us a non-dilutive funding path, although these discussions are obviously early stage.

“Finally, my participation in the capital raise along with my fellow Directors and PDMRs hopefully underlines our collective confidence in our project development trajectory both in South Korea and the Philippines and I look forward to updating shareholders on developments in both countries.”

Read the article online at: https://www.globalminingreview.com/mining/12122022/bluebird-raises-funds-to-advance-south-korean-projects/