Bluebird Merchant Ventures Share Discussion Threads

[gary1966] 03/12/2020 11:27

I have been watching this but haven't committed to buying yet. For me it is definitely the not knowing how the deal is going to be structured that is stopping me buying at the moment. Being able to use the loan facility is the best option for me as I am sure it is most others. Any share issuance is going to be dilutive and what price will they be placed at? Royalty terms could be quite dilutive. Then on a more general point we have the price of gold and how that is going to hold up if economies are up and running from the middle of next year.

GLA

[leopoldalcox] 03/12/2020 11:13

I'm surprised by the drop in the share price I don't think the valuation was a shock for most, so possibly some folks rotating out of gold and into copper / recovery plays

[cbeadle] 03/12/2020 10:21

Hopefully this is a short term dip as we wait for news on buying Southern Gold’s 50% share

[andy] 01/12/2020 15:09

user,


OK fair enough.


It will all become clear in due course I guess, but I still wonder why SAU didn't stay for the production, with what is known publicly about the assets that were in the JV.


If they take BMV paper as part of the deal I will be more bemused.

[andy] 01/12/2020 10:27

user,


I wasn't suggesting anything "dubious" at all!


I was just wondering whether those funds could be used for the buyout?

[user2007] 01/12/2020 09:38

I would guess that given the circumstances the terms and conditions could be renegotiated to use up to 20m to finance the buy out ad well. To acquire the other 50% of the mines is not a dubious reason to spend the money if you believe in the project.

[andy] 01/12/2020 08:49

Leopold,


Thanks, but that actually says "minimum $5 million and maximum $20 million", and I note everyone always uses the maximum figure.


I wonder under what the terms are to achieve the maximum figure, and whether those funds are actually available to fund the buyout?

[leopoldalcox] 30/11/2020 23:18

Hi Andy,Apologies, poor wording from me.They have access to 20m usd in the financing agreement, per 28 Sept rns:Bluebird Merchant Ventures Ltd(the "Company" or "Bluebird")Funding UpdateBluebird Merchant Ventures (EPIC: BMV), the Korean focused gold development group is very pleased to announce a Funding Update with regards to the South Korean Projects.Highlights:•  South Korean investors accelerate funding schedule•  First tranche of non-dilutive funding has been received•  Minimum funding commitment of USD 5 million, maximum funding commitment USD 20 million•  Funding in the form of a pre-payment for gold  to be paid from production

[andy] 30/11/2020 20:03

leopold,


Where do BMV say they have $20 m in cash?

[leopoldalcox] 30/11/2020 16:40

BMV have 20m usd in cash. According to the CEO, each mine will take 2.5 to 5m USD to start up. Leaving 10m to buy out Southern Gold. Works out about right. Doubt Southern gold will want equity, but a royalty may be of interest. I say just pay them the cash and walk away

[andy] 30/11/2020 15:18

Digger,


That's how I read it too.


I wonder how much BMV paper SAU will accept?


anyone knows what happens if the companies cannot agree the structure of the buyout?
I.E. if BMV cannot raise the cash and SAU won't accept BMV paper.

[dreamtwister] 30/11/2020 12:41

Bluebird will now settle by 26 January 2021. Bluebird will now enter into dialogue with Southern Gold with a view to complete a Sale and Purchase Agreement that may include an equity and royalty component. The Company hopes to conclude this process swiftly in order that the projects may progress.

[cbeadle] 30/11/2020 10:59

The uncertainty of seeing how the funding works out is causing price weakness

[digger2779] 30/11/2020 10:55

Guru - I think that funding is to cover operating costs only and not to buy the other half of the mines. They have to start extracting the stuff to show they can repay the drawdown. I might be wrong but that's the way I see it.

[dreamtwister] 30/11/2020 10:20

sau....pro-active....update

[guru] 30/11/2020 10:00

BMV have already stated that they have up to $20m non dilutive funding in place:

BMV RNS 28th Sept

The Company is pleased to update shareholders that it has received the first tranche of funding that will enable progress on the ground in South Korea and for construction to commence. The funding is non-dilutive and is a straight pre-payment for gold with no interest. The Company will repay the debt funding in gold from production at a 20% discount to the gold price based on the gold price at the time of delivery. The agreement with its South Korean funding partners provides for a minimum commitment of USD 5 million and a maximum commitment of USD 20 million.

[andy] 30/11/2020 09:23

cbeadle,


"The more defining RMS will be how Bluebird settles with Southern Gold for the 50% share"

---


Exactly!


They've got to raise the financing first, and it does look as though it will be a combination of cash, some BMV equity, and possibly a royalty stream.


Let's see how they get on with raising that first...

[cbeadle] 30/11/2020 09:08

I think the valuation was probably largely in line with expectations, effectively neutral news for BMV. The more defining RMS will be how Bluebird settles with Southern Gold for the 50% share. The current gold price is also subdued

[user2007] 30/11/2020 08:24

An interesting reaction to the news. Looks like very neutral no disappointment and no excitement either. My guess was 7.25m so should I be disappointed? Yes for a few minutes I was but after a quick calculation I realised we bought the 50% of the co for equivalent of less than 6k oz of gold ..... That put it into a very different perspective....GL

[montynj] 30/11/2020 08:24

Any reason for muted reaction to RNS ?

[parsons4] 30/11/2020 08:00

Yes great news, plenty of upside I think going forward especially if GOLD resumes the increase up to $2000 an oz !!

[montynj] 30/11/2020 07:41

Excellent news

[annie1982] 30/11/2020 07:24

Great result, lets move forward and get gold gold gold

[jestercat2] 30/11/2020 07:22

7.5m is what I had my money on. Onwards and upwards.