Bluebird Merchant Ventures Ltd

("Company" or "Bluebird")

Funding package to accelerate move to production

Bluebird Merchant Ventures (EPIC: BMV), the Korean focused gold development group is pleased to announce that it has secured an additional comprehensive funding package with a professional UK investment company specialising in financing mining and small cap entities listed in the UK.

Highlights:

·   Comprehensive funding package secured to enable the Company to advance to initial gold production in 2022;

·   The Company' Board of Directors demonstrate commitment through agreeing to a 12 month lock-in on their respective shareholdings;

·    Existing debt refinanced on attractive terms;

·    Funding package has the support of Southern Gold;

·   Search for a UK based Executive who will be responsible for promoting the Company and engaging with shareholders as the Company progresses to production.

This new funding package will, subject to appropriate in country progress in South Korea and share price performance, result in fresh equity subscriptions at 2 pence per share together with supplementary debt funding to bring about production at initially our Kochang gold and silver mine.

The funding package comprises an initial debt tranche of $500,000 payable in 2 equal tranches in April and May 2022 to catalyse operations on the ground and an Option to subscribe for a further 100m shares at a floor price of 2 pence per share over the next twelve months. The debt carries interest at a fixed rate of 10% and is repayable on 15 April 2023. Attached to the debt are warrants valid for three years with an exercise price of 2.5p. Should the warrants be exercised during the loan term they will serve to reduce the outstanding debt repayment amount. Further, the interest is electable to be paid at a price of 2.5 pence per share should the lender so elect. An existing loan of £250,000 has also been refinanced on the same terms.

Should the lending entity sell any of the subscribed shares over the next 12 months then the Company will benefit further from a share of 50% of the proceeds that such shares are sold at in excess of the 2 pence per share floor price. This will thus allow the Company to receive further incremental funds from any increase in the share price without the commensurate dilution.

The Company is presently updating the schedule of works, costings and timetable and expects to update the market shortly with this information at various stages as we progress through 2022. Management are planning an imminent visit to South Korea to establish works commencement following the relaxation of Covid travel restrictions.

Southern Gold, the Company's largest shareholder has shown support for the new funding package and its purpose being to accelerate towards gold production in 2022.  In this regard Southern Gold have indicated their agreement to a lock-in of their remaining shareholding in Bluebird Merchant Ventures for a minimum of 12 months subject to satisfactory paperwork anticipated to be completed in the immediate term. The Board of Directors of the Company have also agreed to a lock-in of their respective shareholdings on the same terms illustrating their belief in the project economics.

The company also is now actively pursuing the search for an appropriately experienced Executive Director to be appointed in London whose remit will be to promote market awareness of the company amongst investors. 

The Company previously received $353,300 of non-dilutive funding from Auric Network in the form of a pre-payment for gold at a 20% discount based on the price at the time of delivery.  The Company intends to reactivate the relationship with Auric Network as progress is made on the ground.

As part of the new funding solution for the company a total of 13,003,268 shares have been issued at an average price of 2 pence per share and warrants over 25,280,000 shares with an exercise price of 2.5 pence per share and three-year life.  The Company will make application for the shares to be admitted to trading which is expected on or around 21 April 2022.  Upon Admission there will be 635,319,056 shares in issue.

Colin Patterson, CEO, commented:

"After a lengthy hiatus due to the global pandemic which has caused substantial delays to our plans, Bluebird is now finally ready for action on the ground at its two 100% owned projects.  We are on the cusp of the beginning of a complete reboot of Bluebird's Korean opportunities at the right time in the gold price cycle given the global inflation outlook, supply restrictions and growing geopolitical tensions. Securing this additional financing package is the catalyst to propel us forward."

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014 ("MAR").

Enquiries:

Bluebird Merchant Ventures Ltd

Jonathan Morley-Kirk, Non-Executive Chairman                                [email protected]