Bluebird Merchant Ventures Announces Purchase of Southern Gold Shares by Catalyse Capital
Shares of Bluebird Merchant Ventures have seen a significant increase of up to 24% in early trade following an announcement that Catalyse Capital will be acquiring Southern Gold's 17.8% shareholding in the company.
In an update released on Wednesday, the UK-listed gold miner with a focus on South Korea reported that Catalyse Capital, a long-standing and supportive shareholder, will initially purchase 22.5 million shares in Bluebird at a price of 0.55 pence per share.
Furthermore, Catalyse Capital has agreed to acquire the remaining 100 million shares from Southern Gold between September and December. These shares will be purchased in blocks of 25 million, with the price set at 75% of each month's volume-weighted average price and a floor price of 0.4 pence.
Southern Gold has been divesting from Bluebird Merchant Ventures as part of its strategy to shift its focus towards battery technologies and critical minerals exploration in South Korea, rather than gold. The company has already sold 26.25 million shares of Bluebird.
Bluebird's Chief Executive, Colin Patterson, expressed the board's satisfaction with the phased transaction, which will result in Southern Gold exiting the company's register. Patterson emphasized that this development allows the board and investors to concentrate on the positive aspects of the business, such as securing temporary use permits for the Gubong and Kochang historic gold mines, as well as the progress being made by their Philippine JV partner in Batangas. They are currently working on finalizing the eagerly awaited drill plan, which is expected to further demonstrate the project's exceptional potential.
By 0757 GMT, Bluebird Merchant Ventures' shares were up 0.10 pence or 16%, reaching 0.73 pence after earlier peaking at 0.78 pence.
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