Bluebird Merchant Ventures inks term sheet with Eco-Cities

Bluebird Merchant Ventures has signed a term sheet with a community- and environmental-focused local partner, Eco-Cities Property Holdings Inc, in order to bring its gold project to production.

Eco-Cities, an investment holding company of a Manila-based law firm, would take over all aspects of community well-being and permitting as well as helping the company develop a sound environmental plan.

"The local partner can earn a total of 20% of project level equity in the local subsidiary company, MRL Gold Inc, based upon delivering the key permitting milestones," said Bluebird.

Equity could be earned in increments of 5% upon delivery of the Environmental Compliance Certificate and Declaration of Mining Project Feasibility.

Both of these were local permits followed by commencement of construction of the mine and finally upon commencement of production.

Bluebird said it believed that bringing on a local partner would smooth the transition into production stage.

"Eco were selected as a local partner due to their experience in navigating such challenges and the strength of their local connections, which has been demonstrated to Bluebird," it added.

"The term sheet will form the basis of a definitive agreement that the Company expects to announce by the end of Q1 2017."

Meantime, due to uncertainty with operating mines in the Philippines, Bluebird has been actively investigating other opportunities in the wider South East Asian region.

"A number of opportunities have been investigated and the Company expects to update the market by the end of Q1 2017."