Bluebird Merchant Ventures Share Discussion Threads

[euclid5] 04/8/2020 08:45

Bluebird Merchant Ventures (EPIC: BMV), the Korean focused gold development group is pleased to announce a PDMR/Director Dealing, a share purchase by Kensington Trust Singapore Ltd ("Kensington"). Kensington is Bluebird's largest shareholder and is a party associated with CEO, Colin Patterson.

Kensington purchased 1,253,497 shares from Momentum Resources ("Momentum") that formed part of the shares issued to Momentum as a result of the Exercise of Warrants that was announced on 18 June 2020. Colin Patterson has a minority interest in Momentum and therefore is considered a related party.

The share purchase increases Kensington's stake to 69,930,300 shares, which represents 18% of the issued share capital. The PDMR Notification is set out below.

[annie1982] 04/8/2020 08:38

So looks like A$4m has already been spent on exploration. Makes sense then.

[dreamtwister] 04/8/2020 08:36

We recently invested in Southern Gold Limited. To structure a deal there we spent over six months doing due diligence and engaging with management before being introduced to the company through Doug Kirwin whom we met at the Sprott Symposium in Vancouver in 2019. Doug is very well-known and respected in geological circles. He's the ex-Ivanhoe executive VP and exploration manager. He was part of a team that had discovered Oyu Tolgoi. He had discovered the Eunsan-Moisan gold mines in South Korea, and then they hit Oyu Tolgoi and Friedland basically said it's time to pack up shop in South Korea, and head to Mongolia. Southern Gold is basically the only public gold exploration play in South Korea. We see a nice read across to Irving Resources and Japan gold. It is obviously not ring of fire mineralization, but you are looking for low sulfidation, medium sulfidation epithermal, and Breccia pipe style mineralization. There may be potential for other styles of mineralization as well. Southern Gold is not focused on orogenic gold as it is believed that this has been well explored and exploited historically.

We think South Korea is very under explored for gold. Unfortunately, whilst we had been looking for a very aggressive $10 million Aussie raise, which was raised and commitments had been made, COVID-19 derailed that raise, so the company ended up only raising A$4 million. Covid-19 has also stymied the pro gen aspect of the business as it has made getting expats into the country and back home again very difficult. We got comfortable when we conducted our site visit. The late Terry Grammer and I visited along with their technical team in November of last year. We quickly realized that, every time they were sending their pro gen teams out to conduct boots on the ground, exploration they were finding new areas with outcropping veins. The Southern portion of the country is largely under explored. We think they have an excellent team of geologists and local support and proved to us that they can operate in country. We just think it's a numbers game and a matter of time, and clearly a matter of dollars.

We didn't get the amount of dollars that we wished to raise to execute on our core strategy because of COVID-19. Ultimately, we got a very attractive entry price and structured the deal in a fashion of our liking. I'm confident that when flights resume and they can get the pro gen team back in place, we will continue to add new projects and hopefully build a very exciting gold country play. A lot of people will be thinking South Korea. Why would you go there? It doesn't have a mega mining industry. Frankly, because when you drive around you can go anywhere in no-time, there's excellent infrastructure. There's excellent access to power and internet and where they are exploring is not densely populated. The operational team was clearly focused on working with the locals and the addition of Bee Jay Kim to the Board and the interaction between him and the locals gave us a lot of comfort. They're a very industrial nation, which would explain why they've overlooked a lot of the gold mineralization since the Korean war. At some point, if we can prove up enough potential and or discover a viable gold deposit, I believe it will be of interest to other players much in the same way as Irving Resources and Japan Gold attracted the majors. It's very early, but certainly has the right technical expertise there and the right geological potential. There are high barriers to entry and so they have a great first-mover advantage. I look forward to hopefully pursuing a much more aggressive drilling and pro-gen campaign

[dreamtwister] 04/8/2020 08:22

aussi rags



listing on the lse ! here kitty kitty ?

[cbeadle] 04/8/2020 07:37

I wonder what Metal Tiger are making of this, they have a holding in SAU. Could they come on our board and release funds for BMV?
Also low volume traded yesterday so I think everyone is sitting tight

[cool runnings] 04/8/2020 07:22

Andy, you're missing the point . He said they were funded as they do have cash available . However they didn't want to spend the money on developing the mine to production. This only came to light at the recent board meeting where both parties proposed their plans

[andy] 03/8/2020 22:24

cbeadle,


But that would cost money, whereas putting it back into production is the quicker, cheaper route.

I don't buy the excuse that SAU only want to explore, else why enter into a production JV in the first place? They would surely be better off producing and using the cashflow to fund their exploration campaign.

They raised $4 million, and according to Aidan on a recent podcast SAU were fully funded and ready to go.

[cbeadle] 03/8/2020 22:12

I think formal JORC reserves figure would be a big boost. SAU could prove up more reserves, good synergy between SAU and BMV has been missed

[montynj] 03/8/2020 21:01

Why would I want to necessarily sell ? I'm simply asking pertinent questions

[bittorrent] 03/8/2020 20:55

If there is no formal JORC reserves figure, how does anyone put a value on the project? If it comes to it, how does an independent arbitrator decide on a value?

[cbeadle] 03/8/2020 20:49

This is a really interesting one and hard to say which way it’s going. SAU are obviously geared completely towards exploration, but the valuation difference between them and BMV is an obvious source of frustration for Simon Mitchell. With current uncertainty they obviously sniff an opportunity to seriously strengthen their balance sheet and secure funding for potentially lucrative though risky exploration projects in South Korea. I think BMV must make the best of this opportunity. The share price has declined on small volume. The best option might be for a very focused partner to come and buy SAU out. We must wait and watch this space carefully

[user2007] 03/8/2020 16:52

Funny enough maybe it would be helpful if the BMV share price dropped as the valuation of the 50% stake will be to certain degree correlated to MCap of BMV.This way we might buy it a bit cheaper. .On the other hand if a 3rd party was willing to pay a premium to the current mcap it would have a positive impact on BMV share price as well. .If I ignore the delay which is frustrating then it is a win win situation.

[dreamtwister] 03/8/2020 16:20

Simon Mitchell
@SouthernGoldMD
·
6h
The development is being advanced without a reserve under the JORC code which makes it difficult to promote on the ASX. Having said that, BMV have a market cap which underlines the value being seen in that market. There are many ways to release value in this scenario.

............................................................................................................................................................

edit:

If a sale to BMV does not proceed, Southern Gold has the option to consider a sale, whether partially or fully, of its 50% interest in the Singapore JV companies to third parties or the possibility of listing or vending these JV assets onto another stock exchange.

Discussions with third parties have commenced and Southern Gold has made some progress on several of these options.

[andy] 03/8/2020 16:08

That's not what Aiden said, he said they were funded for their half of the JV.

[cool runnings] 03/8/2020 15:22

They have funds ! Correct . But not to fund these projects !

[andy] 03/8/2020 15:13

cool runnings3 Aug '20 - 14:30 - 2125 of 2131

They aren’t funded to spend on the BMV projects !

---


That's not what Aiden said on his recent podcast!


He specifically said Southern Gold were financed for their half......

[dreamtwister] 03/8/2020 15:12

invested within sau then its job & knock.

[user2007] 03/8/2020 14:55

Hostile TO of BMV?With 40% of votes belonging to the three main guys? It would need to be a rather atractive offer ...

[dreamtwister] 03/8/2020 14:48

A share liason group,as strength in voting rights

may prevent a hostile t/o !

[user2007] 03/8/2020 14:42

I would be happy to proportionally fund the other 50% if an open offer was the option as long as the BoD negotiated a reasonably good price and also participated.

[dreamtwister] 03/8/2020 14:34

southern gold are the landlords it is bluebirds duty to pay the rent

if they dont then they get the eviction papers served,in a suttle way

in reflection of todays Rns.



loves a lumpy matress

[digger2779] 03/8/2020 14:30

Jasper - "We are not afraid to joint venture to those that know what they are doing."

that has been taken out of context from the 1st page of the company website. It's just part of Southern Gold's Vision/Mission statement. BMV wasn't specifically mentioned.

[cool runnings] 03/8/2020 14:30

They aren't funded to spend on the BMV projects !