Bluebird Mining Ventures Ltd on Monday said it raised £62,000, which will go towards trimming the size of a loan agreement with Catalyse Capital Ltd.
Bluebird issued 6.2 million shares during a placing at 1 pence each. Bluebird shares closed down 8.1% at 0.83p in London on Monday.
The proceeds from the placing reduce the gold-focused mining company’s loan from Catalyse to £288,000 from £350,000. That loan had been announced earlier this month. Bluebird explained at the time that it would also conduct an equity raise, to include new and existing investors.
The amount raised from the equity issue would then be ‘netted on a pro rata basis against the loan capital to be drawn’, the firm had explained earlier this month.
‘The loan, which has been split equally between Catalyse Capital Ltd and Tracarta Ltd, was formulated as the board believes that the company is currently materially undervalued and the utilisation of the capital markets at this point would be detrimental to all stakeholders,’ Bluebird said Monday.
Bluebird’s Interim Chief Executive Officer Aidan Bishop added: ‘With the JV’s in place across our three gold projects in South Korea and the Philippines totalling $9 million, the new loan and a reduced cost structure, we are financed for at least another 12 months.
‘We believe we are materially undervalued highlighted by the high level of fee conversions into equity at the placing price of 1p per share. We hope that the next 12 months will see a material transformation in our project profile as we look to develop all three high grade gold projects.’
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