Asia-focused resource development group Bluebird Merchant has successfully raised £436 500, which it will use to advance its South Korean gold projects.
The London-listed company reported on Monday that it had placed all the available headroom of 19 400 000 shares and that its management had participated.
The funding will be used to advance the pre-construction phase of the Gubong and Kochang mines and to complete more detailed design work required for the construction phase.
Bluebird is targeting first gold pour in the fourth quarter of 2019.
Once gold production begins, it is planned to increase production to 100 000 oz/y of gold over a five-year period.
An agreement has also been reached with the local landowner at Kochang for use of the land outside the main adit entrance.
This agreement is regarded as a strong indication of local approval for the reopening of the mine and augments the application for the permit to develop the Kochang mine.
The company has the approval from the Mines Safety Department to carry out refurbishment works in the adit which is expected to start in April, prior to the start of the definition drilling underground thereafter.
A similar agreement is already in place at the Gubong mine, which the company believes also demonstrates support for reopening the mine.
The company is optimistic that it will receive a grant from the South Korean government for the underground drilling campaign.
“The placing enables the company to progress and advance towards the goal of reopening the Gubong and Kochang mines,” commented Bluebird CEO Colin Patterson.
“The level of local and government support for the reopening of the mines is very encouraging. Moving to the next phase of the project is key for Bluebird as we advance towards production and achieving first gold pour. It is really exciting that Bluebird is as the heart of bringing back gold production to South Korea which is proving to be one of the most welcoming mining jurisdictions that I have ever worked in.”
SVS Securities has also been appointed as a joint broker to the company, which is expected to widen its reach to potential shareholders.