Bluebird Mining Ventures Ltd (LSE:BMV) has completed the sale of its entire interests in the Gubong and Kochang gold projects in South Korea to Canadian mining investment firm 1575275 B.C. Ltd.

Under the transaction, Bluebird will receive nominal cash consideration while retaining a 2.5% net smelter return royalty on each project.

The buyer has the right to purchase each retained royalty from Bluebird for US$2.5 million.

Disposal Removes Future Funding Commitments

The sale removes Bluebird’s future funding commitments associated with the two South Korean projects and reduces the number of directly owned mining assets within its portfolio.

While Bluebird will no longer hold direct ownership interests in Gubong and Kochang, the retained net smelter return royalties provide the company with exposure to potential future production from the projects, subject to their development and operation.

The transaction follows Bluebird’s previous disposal of mining assets in the Philippines, under which it retained an interest in future net profits.

Bluebird Continues Capital-Light Strategy

Bluebird said the South Korean disposal is consistent with its strategy of focusing on royalty, streaming and profit-sharing arrangements rather than directly funding and operating mining projects.

The company’s activities include gold streaming, mining and treasury operations, with its strategy focused on reducing direct capital requirements associated with project ownership.

More About Bluebird Mining Ventures

Bluebird Mining Ventures Ltd is a London-listed gold streaming, mining and treasury company.

Its business model includes royalty, streaming and profit-sharing structures across mining and other real-asset opportunities, alongside treasury activities. The company is seeking to develop its portfolio through structures that limit the capital requirements and operational exposure associated with directly owning and developing projects.