27th Mar 2020 08:23
(Alliance News) - Bluebird Merchant Ventures Ltd on Thursday said it has entered into a funding agreement with an undisclosed South Korean company.
The gold development company explained that the deal creates a path to provide USD5.0 million of debt finance which will be repaid from future gold production.
Bluebird said it expects to update the market in the coming weeks with further detail, but said there can be no guarantee that this will be successful.
Meanwhile, the company has secured a short-term funding of GBP200,000 from investors to ensure it can meet its obligations until funding for the projects is agreed.
The term of the loan is five months, Bluebird said, and it carries a fixed interest of GBP10,000 payable at the end of the loan term.
The company may draw down the loan in stages.
Bluebird said 15.4 million warrants have been issued to the unnamed loan provider with an exercise price of 1.3 pence per share and a maturity of two years.
The stock was down 0.6% higher in London on Friday morning at 1.79p a share.
Looking ahead, Bluebird said South Korea is emerging from the Covid-19 pandemic and "life is slowly returning to normal".
The company said it believes it is unlikely that there will be a long-term material effect to its business or its ability to bring about gold production.
By Evelina Grecenko; [email protected]
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