Definitive Farm In and Joint Venture Agreement over Gubong executed with Bluebird Merchant Ventures
- Agreement includes framework for management of the incorporated Joint Venture
- Bluebird Merchant Ventures has completed the US$500,000 initial farm in expenditure requirement
- The Joint Venture is formed after submission of a report on feasibility to Southern Gold, expected in July 2018
Gubong Farm In and Joint Venture Agreement Executed
Southern Gold Ltd (“Southern Gold”) is very pleased to advise that it has executed the definitive Farm In and Joint Venture Agreement for the Gubong Gold Project with its development partner, London Stock Exchange (LSE) listed Bluebird Merchant Ventures Ltd (“Bluebird”).The document provides the final framework for the management of the 50/50 Gubong Project Joint Venture through an incorporated structure with Bluebird as operators.
The 50/50 Joint Venture commences after submission of a report on feasibility for the Gubong Gold Project expected in July 2018.The report is to define a development framework to advance the project with capital costs of less than US$10 million that is satisfactory to Southern Gold Ltd.
Bluebird has completed its investment commitment by spending a total of US.5 million in the advancement of the Gubong Gold Mine.Until the Joint Venture is formed Bluebird is responsible for all costs at Gubong, after which costs are shared 50/50.
Southern Gold Managing Director, Simon Mitchell: “This is an important milestone for the advancement of the Gubong Project and speaks to the quality of the relationship between Southern Gold and Bluebird.Both companies are very excited by what we are seeing at Gubong and the scale of the opportunity suggests the potential for the project to be a true “company maker”.
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