Bluebird Mining Ventures (LSE:BMV) has completed the disposal of interests in the Gubong and Kochang projects located in South Korea, as the company repositions towards a gold streaming, mining, and treasury business model.
In consideration for the interest in both projects, the company received a nominal cash sum and retained a 2.5% net smelter return royalty over each asset. The transaction also includes royalty buy-backs, exercisable for US$2.5 million ($3.47 million) in respect of each royalty.
Bluebird Mining says the transaction is ‘consistent with its objectives’ of developing a capital-light royalty and streaming platform across mining and treasury assets.
While reducing direct exposure to the operational and capital requirements associated with project ownership and development, Bluebird Mining retains exposure to future project success through its royalty interests.
The disposal follows the company’s previously announced disposal of its Philippine mining assets in exchange for a share of future net profits.
The company believes that royalty, streaming, and profit-sharing structures provide continued exposure to the mining sector. At the same time, it reduces the funding, development, and execution risks associated with the ownership and operation of mining projects.
Bluebird Mining Ventures is a gold streaming, mining, and treasury company focused on building value through disciplined capital allocation into scarce real-world assets.
Write to Aaliyah Rogan at Mining.com.au
Images: Bluebird Mining Ventures
