REG - Bluebird Merchant - Funds Received and Admission of Shares to Trading

Bluebird Mining VenturesAnnouncement

20/03/2023 07:00

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RNS Number : 4831T  Bluebird Merchant Ventures Limited  20 March 2023

Bluebird Merchant Ventures Ltd / EPIC: BMV.L / Market: FTSE / Sector: Mining

20 March 2023

Bluebird Merchant Ventures Ltd ('Bluebird' or 'the Company')

Funds received and Admission of shares to trading

 

Bluebird Merchant Ventures Ltd, a gold company primarily focused on bringing
historic mines back into production, announces that the full proceeds of the
Company's recent £1,215,000 placing have been received by the Company.

 

In order that the subscribers to the Placing receive the full 60,750,000
shares, the Company has issued 37,750,000 New Ordinary Shares ('the Placing
Shares') and 23,000,000 Shares have been transferred from Momentum Resources,
which form part of the Pledged Share Pool that was announced as being
available on 6 March 2023.  This arrangement has been facilitated by the
Directors, as upon application being made for the Placing Shares to be listed,
the FCA informed the Board that the current headroom was not sufficient. This
was because 62,385,234 shares issued between 2016 and 2019, which were
admitted to trading as announced on 20 July 2022, constituted part of the
available headroom for the previous 12 months and not the expected period
between 2016-19.

 

Momentum Resources will receive no consideration, interest or other benefit
for the transfer of the pledged shares and the Company will issue Momentum
Resources 23,000,000 Shares either upon publication of a new prospectus or
when there is sufficient headroom.  Momentum Resources is a related party of
Bluebird Directors Colin Patterson and Charles Barclay.   The transaction
was approved by the Non-Executive Chairman, Jonathan Morley-Kirk.

 

All of the warrants related to the Placing that was announced on 6 March 2023
have been issued.

 

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 21 March 2023.

 

The Company's total issued and voting share capital upon Admission will be
689,865,042 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.

 

The PDMR Notification is set out below.

 Notification of a Transaction pursuant to Article 19(1) of Regulation (EU) No.
 596/2014
 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a.  Name                                                         Momentum Resources Ltd
 2   Reason for notification
 a.  Position/Status                                              A party associated with Colin Patterson and Charles Barclay, both Directors of
                                                                  the Company
 b.  Initial notification/                                        Initial notification

     Amendment
 3   Details of the issuer, emission allowance market participant, auction
     platform, auctioneer or auction monitor
 a.  Name                                                         Bluebird Merchant Ventures Ltd
 b.  LEI                                                          213800QLGKFZHML52C51
 4   Details of the transaction(s): section to be repeated for (i) each type of
     instrument; (ii) each type of transaction; (iii) each date; and (iv) each
     place where transactions have been conducted
 a.  Description of the financial instrument, type of instrument

                                                                  Ordinary shares
     Identification Code                                          ISIN: VGG118701058
 b.  Nature of the transaction                                    Transfer of pledged shares as per 06 March 2023 notification
 c.  Price(s) and volume(s)                                       23,000,000 shares at price per share of GBP 2.00p
 d.  Date of the transaction                                      13 March 2023
 e.  Place of the transaction                                     London Stock Exchange

 

This announcement contains inside information for the purposes of article 7 of
the market abuse regulation EU 596/2014 ("MAR").

 

**ENDS**

 

For further information please visit https://bluebirdmv.com or contact:

Colin Patterson
Bluebird Merchant Ventures Ltd               Email:
colin@bluebirdmv.com

Nick Emmerson                                SI Capital
 
 Tel: 01483413500

 

About Bluebird:

Bluebird Merchant Ventures Ltd (BMV.L) is a London listed South Korea-focused
resources company centred on bringing historically producing gold mines back
into production. The Company, led by a team of proven mine rehabilitation
experts, currently has two 100% owned licensed high grade narrow vein mining
projects, the Kochang Gold and Silver Project ('Kochang') and the Gubong Gold
Project ('Gubong'), which each have a defined route to low cost/ low capex
production with a cumulative target of producing 100,000 oz + Au per annum.

 

The management team has invested cUS$2 million personally into the Company and
believe, following analysis of historic production and exploration data, as
well as extensive sampling, geological, geophysical, and engineering studies,
there is potential for in excess of 1.5 million oz of mineable gold in its
Korean projects alone.

 

Kochang is an epithermal vein deposit with parallel vertical ore bodies
covering 8.3 sq km that reportedly produced 110,000 oz of gold and 5.9 million
oz of silver between 1961 and 1975.  Consisting of a gold and silver mine,
there are currently four main veins and a number of parallel subsidiary veins
vein which have been identified, as well as a newly identified cross-cutting
vein. Historic drilling indicates the veins continue to depth below the
current 150m mine and mapping shows the veins on surface providing potential
above and below the old workings. The veins extend to the NE providing a
strike length of 2.5km with 600m between the two mines not exploited.  There
is potential to expand operations to the southwest/northeast and to depth, as
well as exploit the already mined areas. The total resource potential is
between 550,000 and 700,000 tonnes, with a range of grades between 5.2 g/t to
6.6 g/t gold, and 27.3 g/t to 34.8 g/t silver.  Following the granting of a
Mountain Use permit, there is an estimated 6-to-9-month development time to
trial mining.

 

Gubong, which was historically the second largest gold mine in South Korea has
9 granted tenements covering c.25 sq km.  Gubong is moderately dipping with 9
veins extending 500m below surface and known to extend at least a further
250m. However, the production opportunity for Bluebird prior to looking at
deepening the mine is the 25 levels already developed with all the remnants
and unmined areas left by the original miners.  The 25 levels extend over
120km in total length which indicates the size of the opportunity. The Korea
Resources Corporation ('KORES') estimated 2.34M tonnes at some 7.3g/t Au
garnered from 57 drill holes over 17,715.3 metres.  With additional sampling,
mapping, pit modelling and grade analysis, plus the fact that Gubong is an
orogenic deposit, which typically have a depth of 2km compared to the current
depth of 500m, the Board believe it has a geological potential of 1 million +
oz Au in-situ, plus an estimated additional 300,000 oz Au from satellite ore
bodies.

 

Additionally, the Company has the highly prospective Batangas Gold Exploration
Project in the Philippines, where it has an agreement with a Philippine
company, whose owners have decades of experience in mining, to develop the
Project.  The JV covers the entire Batangas Project area, which has a current
JORC compliant resource of 440,000 ounces, including a maiden ore reserve of
128,000 ounces (including silver credits). Exploration expenditure to the tune
of c.$20m has already been invested.  Work is focused on completing
Exploration and Environmental Work Programmes initially targeting the
high-grade Lobo area, although there is excellent exploration potential across
the licence with high-grade targets already identified and 14km of identified
mineralised structures.  The staged agreement is based on the JV partner
achieving defined development goals and provides Bluebird with a free carry on
the development of Batangas with a view to advancing to construction.

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