Bluebird Merchant Ventures Share Discussion Threads

[cool runnings] 01/2/2021 07:04

Share prophets BUYA "Further re Joint Venture Update" announcement from Bluebird Merchant Ventures (BMV) isn't the resolution of its South Korea gold projects position with Southern Gold (ASX:SAU) – and the shares, albeit still up from a 2.5p offer price recommendation, are currently 7% lower in response at 3.9p. So what's happening here now?Bluebird states that it "has made an Offer of Settlement to Southern Gold as required under the Joint Venture Agreements and is hopeful that a commercial solution will be achieved in a speedy manner". This follows an independent valuation for 50% of the projects of $11.05 million, with the joint venture 'settlement figure' 90% of that; $9.945 million (currently circa £7.25 million).With that a discounted pre-construction value, less was hoped for and Bluebird notes that advancing to gold production is now needed to realise value in both companies interests. Therefore, although delay is an annoyance, there does look a good basis for it to be negotiating.At 3.9p, the Bluebird market cap is £15.5 million and there isn't a significant equity raise in the works – since this is Standard Listed so that would require a prospectus - and that there have been non-dilutive offers of financing. These are with there already South Korean project funding partners who recently provided a further tranche of funding and are stated to "remain committed to the non-dilutive funding process to bring about production in South Korea".That all provides confidence the company will get there – and there is then vast potential to add value. With the projects former mines, the path to production should be swift and the company has previously stated "the estimated average cash cost per ounce (C1 level) is USD 576 per ounce. This is based on both mines over the initial 3 years of production... Over a 3 year period gold production will largely grow organically from 10,000 to 30,000 ounces per annum" – even 10,000 ounces at a, for example, $1,000 per ounce margin, is $10 million and there is eventual potential for much more than even 30,000 ounces per annum.As such, the shares, with the potential to double and more on funding and production progress (a £31 million market cap, equating to circa $42.5 million for example), are still a risk/reward buy.

[dreamtwister] 28/1/2021 16:32

블루 버드-716; 제안3012; 하기 위해 3 개월3060; 있었3648;만 전기 우편3004;로 마지/561; 시간3004;로 남겼1845;니다.이제 제안3008; 등급3012; 매기3648; 않았3004;며 블루 버드,032; 제공6616;거나 블루 버드,032; 마이,536;레이션하,256; 제 3 자가 우울6644;합니다.

[doyourresearch] 28/1/2021 15:44

I agree, I don't think BMV's "debt facility" is all it's cracked up to be and what they're offering (presumably some cash but also a load of royalty or whatever) isn't attractive to SAU. Because if they can't get the cash together to complete the purchase they probably can't get it together to reopen the mines either so the royalty is useless to SAU.

[cool runnings] 28/1/2021 14:08

Of course they haven't got the cash ! What you on about ?

[doyourresearch] 28/1/2021 11:50

BMV sure are acting like they don't have the cash to complete the purchase.If the assets are as good as they say, cash purchase is way better than an effectively dilutive royalty deal.
So why not slap the cash on the table. It's what SAU want and it is, apparently, best for BMV. Only thing stopping it is if they don't have access to that much cash. Remember the debt funding is a minimum of USD5m. If that's all they will lend it isn't enough to do the deal.
If I were SAU I'd be looking at options other than selling to BMV

[cool runnings] 28/1/2021 06:22

The key is here that they are willing to consider the offer and keep dialogue. Positive outcome I'm sure will follow.As advised in the Company's 30 November 2020 ASX release, IGPL is deemed to have offered for sale both of its joint venture interests to BMV and BMV has elected to acquire them. In accordance with the sale process under the Joint Venture Agreements the price payable by BMV is US$9,945,000 (approximately AUD$12,915,000 at the current exchange rate of USD$0.77) and BMV had 60 days, or to 26 January 2021, to complete the payment. As at commencement of business yesterday, 27 January 2021, no payment has been received by Southern Gold or IGPL, which is ready and willing to complete the sale and purchase of its joint venture interests. On the 26 January 2021 BMV emailed the Company a letter outlining, in general terms, alternative means by which the sale and purchase may be settled. Southern Gold intends to consider these proposals and to maintain an open dialogue with BMV to see whether an acceptable agreement may be reached.Southern Gold reserves its and IGPL's legal rights under the Joint Venture Agreements and in relation to the sale and purchase of IGPL's Joint Venture Interests.Authorised for release by the Board of Southern Gold Limited.

[digger2779] 27/1/2021 11:25

Also being a LTH in Kefi I am used to delays but am now questioning why I bother trying to get in at the bottom floor and not just wait for funding to appear. Ok will miss the initial surge but once construction is underway then there is money to be made. At least here we have someone willing to provide non dilutive capital. Hope they will continue to be supportive as we don't want to be starting from scratch not that I think it will come to that.

[highly geared] 27/1/2021 10:27

Probably haggling over the cash component of the price. SAU will want most or all of it in cash, BMV as little as possible with royalty/ equity component. I think it will come to a head in the next week or so. SAU won’t want to try and flog their 50% to 3rd parties due to the time it will take with no guarantee of a better offer , so it’s down to getting the best deal from BMV. BMV meanwhile will be constrained on what the debt providers want to lend for the deal....

[annie1982] 27/1/2021 08:47

Agreed. If SAU hadnt thrown a spanner in the works we would be at 10p by now. More patience needed. Welcome to the stock market.

[user2007] 27/1/2021 08:47

Well I just beginning to think that the whole valuation excersise was a waste of time. SAU decided to walk away and nobody can force BMV to buy the other half for the amount established by the expert if BMV can't afford it or they don't agree with it.

[parsons4] 27/1/2021 08:32

Sold a few more, rightly or wrongly, no longer a big holding for me but still a good bet once non dilutive funding is agreed. I await further news !!!

[annie1982] 27/1/2021 08:19

At least BMV want to get on with it

[cbeadle] 27/1/2021 08:16

Bmv will come good there’s a strong management team who have put their own funding into these projects

[bernieboy] 27/1/2021 08:13

Disappointing in all fair but I am not surprised. Seems to be a repeating pattern here and kefi

[bo doodak] 27/1/2021 07:52

Very weak wording, drip drip drip

[annie1982] 27/1/2021 07:45

Yes good the funding is still there

[cbeadle] 27/1/2021 07:42

I think we probably drop back to 3.7p on this news. They had to update us and sometimes these things take time to process. Good news is still the prospect of non dilutive funding

[bernieboy] 27/1/2021 07:36

Any comments? Further delay.

[parsons4] 27/1/2021 07:36

Not a good RNS, I think they can't agree a way forward because the price put on the 50% was far higher than expected !!! IMHO of course.

[dreamtwister] 26/1/2021 15:28

aussi b/holiday t/d trading halt t/n if settlement

On January 26, 1788, Captain Arthur Phillip guides a fleet of 11 British ships carrying convicts to the colony of New South Wales, effectively founding Australia.

Education is expensive ignorance is costly

[cool runnings] 26/1/2021 15:18

Would expect the news to come tomorrow!

[dreamtwister] 26/1/2021 10:46

the big ? why has the spoil/tailings have not been processed ?

[highly geared] 26/1/2021 08:24

I don’t think you can read anything into the lack of an RNS. The actual period to pull together the SPA for SAU’s 50% was short and SAU needed to agree BMV’s payment proposal.

[bernieboy] 26/1/2021 08:15

We'll I was expecting it to be a bad day to be honest. But the fact that an RNS isn't out could be positive. I. E. They are hurriedly writing a positive one right now to come out later? If it wasn't good surely it would have been ready this morning? Just trying to be a bit positive!