Bluebird Mining Ventures (LSE:BMV) told investors it has agreed a deal to transfer its South Korean mining interests in exchange for a 2.5% Net Smelter Return on each of the Gubong and Kochang projects, whilst granting the buyer a US$2.5 million buy-out right per project.
The gold streaming, mining and treasury company said the buyer is a newly formed Vancouver vehicle founded by Latika Prasad, which will assume direct ownership, future funding and all liabilities while the assets remain early-stage, lacking a JORC-compliant Mineral Resource Estimate and production approvals and carrying exploration risk.
BMV will, meanwhile, transfer the assets for nominal consideration in return for the royalty.
"BMV preserves meaningful upside exposure without the ongoing operational, administrative and funding burden," Sath Ganesarajah, Chief Executive Officer.
The company said the restructure better aligns the company with its strategic focus, materially simplifies its structure and reduces future administrative and audit complexity. It converts legacy-owned South Korean interests into potential royalty revenue streams and allows management to concentrate on scalable streaming and royalty opportunities, BMV added.
