THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has been received word from its Joint Venture partner, London-listed Bluebird Merchant Ventures, of confirmation that the Permit to Develop for the Gubong gold mine in South Korea.
Southern Gold explained that the mine had previously been announced as having been approved by the Ministry of Trade, Industry and Energy (MOTIE) and has now been endorsed by the Cheongyang Provincial Government.
Further explanation informed us that mine development in South Korea is formally approved through a process run by the provincial government.
Southern Gold said the latest nod 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 said in its ASX announcement.
Southern Gold and Bluebird each hold a 50 per cent interest in Singaporean company Gubong Project JV Co Ltd, which in turn holds 100 per cent 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.