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REG - Bluebird Merchant - Raise to advance Korean projects and streaming

Bluebird Mining VenturesAnnouncement

08/12/2022 07:00

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RNS Number : 0005J Bluebird Merchant Ventures Limited 08 December 2022

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

8 December 2022

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

Raises £230,000 to advance South Korean Projects and discussions with mining
streaming fund

Bluebird Merchant Ventures Ltd, a gold company primarily focused on bringing
historic mines back into production, is pleased to announce that it has raised
£230,000 primarily from new investors and the Company's Directors and
Management through the issue of 11,500,000 new ordinary shares at 2.0 pence
per share. 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 (announced on 12 April 2022) available to the Company with a floor
price of 2p. Additionally, the Company is pleased to announce that it 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, c.10,000oz Au per annum. The
Company's two projects have a cumulative production target of 75-100,000 oz Au
per annum and an estimated non-JORC resource of in excess of 1.5million 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.

Bluebird Merchant Ventures CEO Colin Patterson said, "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."

Full Placing Details:

Bluebird is issuing a total of 11,500,000 new ordinary shares (the "Placing
Shares") at a price of 2.0 pence per share through a private placement to
raise £230,000. The Company's Directors and Management have subscribed for
£80,000 of the placing (details are set out below).

Pursuant to the Placing, the Company will also grant the placing participants
with a warrant to subscribe for 1 New Ordinary Share in the capital of the
Company for every 1 shares subscribed in the placing, exercisable for a period
of 1 year from Admission of the Placing shares at a price of 3.5 pence per
ordinary share.

In addition to the Placing, Align Research has converted a further £50,000 of
debt, for the issuance of 2,500,000 New Ordinary Shares in the Company at a
price of 2.0 pence per share ("Debt Conversion Shares") and the 1 for 1
warrant at 3.5 pence as outlined above.

Following the share issuance, the Directors will hold 25.5% of the issued
share capital of the Company.

Application will be made for the Placing Shares and Debt Conversion 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 19
December 2022.

The Company's total issued and voting share capital upon Admission will be
652,115,042 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.

Directors Participation:

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 Kensington Trust Singapore Ltd
2 Reason for notification
a. Position/Status A party associated with Colin Patterson, Director
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 Purchase of shares
c. Price(s) and volume(s) 1,000,000 shares at a price per share of GBP 2.00p
d. Date of the transaction 07 December 2022
e. Place of the transaction London Stock Exchange

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 Jonathan Morley-Kirk
2 Reason for notification
a. Position/Status Director
b. Initial notification/ Initial notification

Ordinary shares
Identification Code ISIN: VGG118701058
b. Nature of the transaction Purchase of shares
c. Price(s) and volume(s) 500,000 shares at a price per share of GBP 2.00p
d. Date of the transaction 07 December 2022
e. Place of the transaction London Stock Exchange

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 Josiah Tralgan and Sons Company Ltd
2 Reason for notification
a. Position/Status A party associated with Clive Sinclair-Poulton, Director
b. Initial notification/ Initial notification

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 Charles Barclay
2 Reason for notification
a. Position/Status Director
b. Initial notification/ Initial notification

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 Monza Capital Ventures Ltd
2 Reason for notification
a. Position/Status A party associated with Aidan Bishop, Director
b. Initial notification/ Initial notification

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 Graeme Fulton
2 Reason for notification
a. Position/Status Project Manager
b. Initial notification/ Initial notification

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 Stuart Kemp
2 Reason for notification
a. Position/Status Chief Financial Officer
b. Initial notification/ Initial notification

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 by email: colin@bluebirdmv.com

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.
Additionally, the Company has the highly prospective Batangas Gold Exploration
Project in the Philippines, which has a resource of 440,000oz Au of which
128,000oz Au is a reserve, and has had c.US$20m invested in it to date. 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 250m 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 current non JORC estimate
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 flat 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 120 km in total
length which indicates the size of the opportunity. The Korea Resources
Corporation ('KORES') estimated 2.34M tonnes at some 6 g/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 potential resource of 1 million + oz Au
in-situ, plus an estimated additional 300,000 oz Au from satellite ore bodies.

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