Business
Share Purchase Agreement Removes Market Overhang
Share Purchase Agreement Removes Market Overhang.
About this update from Bluebird Mining Ventures Ltd.
[{"type":"text","content":"\n\nBluebird Merchant Ventures Ltd / EPIC: BMV.L / Market: FTSE / Sector: Mining\n23 August 2023\nBluebird Merchant Ventures Ltd ('Bluebird' or 'the Company')\nCatalyse Capital agrees to buy Southern Gold's shareholding in Bluebird\n \nBluebird Merchant Ventures Ltd, a gold company primarily focused on bringing historic mines back into production, is pleased to announce that Catalyse Capital Ltd ('Catalyse'), a long running and supportive shareholder of Bluebird, has agreed to acquire Southern Gold Limited's ('Southern Gold') 122.5 million shares in the Company ('the Agreement'). The Board believes that the share purchase by Catalyse, that recognises the true potential of the Company's South Korean and Filipino gold projects, will remove a significant perceived 'overhang' in the trading of Bluebird's shares and allow investors to focus on the inherent value of the three-project portfolio. \n \nUnder the terms of the Agreement, Catalyse has agreed to purchase an initial 22.5 million shares in Bluebird at 0.55p per share with settlement due on the 28 August 2023. Southern Gold's remaining 100 million share will be purchased by Catalyse in four tranches of 25 million shares each, to be settled monthly from September to December 2023. Each of the four tranches will be priced at 75% of each month's VWAP for Bluebird's shares with a floor price of 0.4 pence.\n \nSouthern Gold's existing shareholding of 122.5 million shares represents 17.8% of the issued capital of Bluebird. They initially received the shareholding when Bluebird purchased the Gubong and Kochang projects, which was satisfied through the issue of 200 million shares in Bluebird at a price of 3.6p per share. Southern Gold has been aggressively selling down its equity position in Bluebird as it implements its well documented change in strategy, which is now focused on the commercialisation of its battery technologies and critical minerals exploration in South Korea, rather than gold. It has already sold 26.25 million shares in Bluebird.\n \nThe Board continues to focus on attaining its Mountain Temporary Use Permits in South Korea. The Company awaits the decision of the Board of Audit and Inspection regarding Kochang and is progressing with an influential strategic partner regarding Gubong. Furthermore, its JV par...