Announcement

Gubong Project JV Secures Provincial Approval Document

11 November 2019

Gubong Project ‘Permit to Develop’ Approved by Cheongyang Province

  • Development approval from MOTIE endorsed by local provincial government
  • Approval is subject to several conditions largely related to mine development requirements

Southern Gold Ltd (Southern Gold) has been advised by its Joint Venture partner, London listed Bluebird Merchant Ventures Ltd (Bluebird), that it has received confirmation that the Permit to Develop for the Gubong Gold Mine, previously announced as having been approved by the Ministry of Trade, Industry and Energy (MOTIE), has now been endorsed by the Cheongyang Provincial Government.Mine development in South Korea is formally approved through a process run by the provincial government.

This marks the next important milestone in the project development approval process and is subject to several conditions largely in relation to physical development requirements regarding safety and environmental management.

Bluebird will now present this approval document to the local County government prior to initiating any site works, for which County government approval is required.From a practical point of view, the approval is now in hand and allows for the next stage of development works to begin, subject to presentation of these activities to local community members.

Southern Gold and Bluebird each hold a 50% equity interest in Singaporean company Gubong Project JV Co Ltd which in turn holds 100% of South Korean company Gubong Project Co Ltd which holds the Gubong gold development project.Joint Venture costs are shared 50/50 while Bluebird is responsible for day to day operations.

A similar corporate joint venture arrangement is in place for the Kochang Project which is currently still in the approval process for its Permit to Develop.An update on the status of this project will be provided as soon as notification is received from regulators, expected shortly.