REG - Bluebird Mining Vnt. - Business Update

Bluebird Mining VenturesAnnouncement

27/05/2025 07:00

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RNS Number : 1776K  Bluebird Mining Ventures Limited  27 May 2025

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

 

27 May 2025

 

Bluebird Mining Ventures Ltd

('Bluebird' or 'the Company')

 

Business Update

 

Bluebird Mining Ventures Ltd., a pan Asian gold project development company,
announces a business update in relation to its gold projects in South Korea.

 

Following the recent positive news in the Philippines, unfortunately the
projects in South Korea have not followed the same path.  The Company has
been informed by its legal advisors that the Board of Audit and Inspection
(BOAI) have rejected the arguments presented by the Company for the issuance
of the Mountain Temporary Use Permit (MTUP).  The Company's lawyers strongly
disagree with the determination from the Board of Audit and Inspection citing
that it has insufficient legal basis.  The Company has instructed its legal
advisors to proceed to the next stage of the process which is filing of an
administrative lawsuit.  This process typically takes 6 to 8 months to
conclude.

 

The Board of Audit and Inspection is an administrative body and not a judicial
court whose primary function is the audit and inspection of the accounts of
state and administrative bodies.  The Company's legal advisors note that
there is a reasonable possibility that a court ruling could differ
significantly from the BOAI's decision, as judicial review often applies a
stricter interpretation of procedural fairness and substantive evaluation
criteria than administrative bodies such as the BOAI.  The Directors note,
that whilst this is not the conclusion of the process to secure the MTUP,
there can be no guarantee that the administrative lawsuit will be
successful.  The cost of the lawsuit is insignificant.

 

The status of the Korean projects is set out below:

 

Kochang

 

The Kochang project was awarded a Mining Right on 6 December 2019.  This
allows for mining operations to commence subject to further permits, namely
the MTUP.  The MTUP application covers an area of ground that is
approximately 340 square metres.  The landowner and the immediate host
village where the project is located had previously given their formal consent
and remain supportive of the project.  Under the terms of the Mining Right,
the Company is required to either commence operations within a three-year
period or make a Qualifying Investment of KRW 100,000,000 (circa £55,000)
during any one year.  At the end of this period a further three-year period
is granted to either commence operations or make an additional Qualifying
Investment.  The Mining Registration Office did not require the Company to
make a Qualifying Investment at Kochang due to undergoing the process with the
Board of Audit and Inspection and the Company will not be required to do so
until the conclusion of the legal process.  If the outcome from the legal
process is negative the Company is still entitled to make a Qualifying
Investment and could also make a fresh application for an MTUP.  Given the
opinion from the Board of Audit and Inspection, the joint venture at Kochang
has yet to be triggered.

 

Gubong

 

The Gubong project was awarded a Mining Right on 7 November 2019.  This
allows for mining operations to commence subject to further permits, namely
the MTUP.  An MTUP application was previously withdrawn pending the outcome
of the Kochang process and pending receiving formal consent of the community
despite this not being a legal requirement to secure an MTUP.  Whilst the key
landowner has indicated that they are willing to enter into an agreement with
the Company regarding the use of their land upon reasonable terms, wider
community acceptance of the project has not been forthcoming despite the
ongoing best efforts of the local partner.

 

The Company made a Qualifying Investment at Gubong in February 2024.  No
further Qualifying Investment is required to be made within 3 years from the
previous investment date.

 

The Company has informed its local partner in Korea of the BOAI decision and
considering such and the fact that there is presently not a wide enough
community acceptance of the project at Gubong it has been agreed to suspend
the joint venture at this time until a clearer indication of the likelihood of
community and local government acceptance becomes evident.

 

The Company, at this time, retains 100% ownership of both its projects in
Korea and maintains a very low-cost base, sufficient to remain compliant with
the obligations of the Mining Rights that it has been granted.  The Company
will consider further its strategy in South Korea to determine how best
progress can be achieved.

 

Bluebird Executive Director and Interim CEO Aidan Bishop said, "This is
clearly not the news that we had been hoping for.   For a project to move
forward from the exploration phase to the extractive phase, in any
jurisdiction, both community and local government support is vital.
Unfortunately, this has remained elusive in Korea and clearly needs a complete
rethink as to the best approach.  Therefore, the gold (and its corresponding
value), remains in-situ until such time permissions may be granted.

 

The disappointing news in Korea, underscores the importance of having a
portfolio of projects and given the recent good news in the Philippines, the
focus now firmly shifts there as it is becoming increasingly apparent that
this is where value is likely to be realized in the nearer term.  Following
today's news, the Company will contemplate how best to achieve progress in
Korea and its wider strategy in general including the composition of the team
required for the future."

 

**ENDS**

 

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

Jonathan Morley-Kirk    Bluebird Mining Ventures Ltd     Email:
jmk@bluebirdmv.com (mailto:colin@bluebirdmv.com)

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