TIDMHUM
RNS Number : 9521E
Hummingbird Resources PLC
01 November 2022
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
1 November 2022
Hummingbird Resources plc
("Hummingbird" or the "Company")
Update on Dugbe Gold Project
Pasofino Announces Exercise of Right to Consolidate Ownership of
the Dugbe Gold Project
Hummingbird Resources plc (AIM: HUM) is pleased to report that
Pasofino Gold Ltd ("Pasofino") has provided notice to exercise its
right to convert Hummingbird's 51% interest in the Dugbe Gold
Project ("Dugbe") to a 51% interest in Pasofino, such that Pasofino
would become the owner of 100% of Dugbe (prior to giving effect to
the 10% carried interest of the Government of Liberia) and
Hummingbird would own 51% of Pasofino (the "Consolidation").
The Consolidation is subject to all required government, TSX
Venture Exchange and shareholder approvals .
Pasofino will issue to Hummingbird such number of common shares
of Pasofino that results in Hummingbird owning 51% of the
outstanding Common Shares of Pasofino on completion of the
Consolidation. In addition, Hummingbird has an anti-dilution right
that provides that if, as and when any warrants outstanding as at
the date the option satisfaction notice was issued by Pasofino are
exercised, Pasofino shall issue to Hummingbird one Common Share for
each Common Share issued in connection with such exercise.
The announcement by Pasofino can be accessed through the
following link: https://pasofinogold.com/news/default.aspx
Dan Betts , CEO of Hummingbird Resources, commented: "With this
consolidation, Hummingbird moves to owning 51% of Pasofino which
simplifies the ownership structure and ensures that what is one of
the largest gold projects in West Africa has clear visibility of
its own. With 2.8m oz of gold reserves, unrivalled exploration
potential and a recently completed feasibility study, this project
has some of the most attractive economics of any development
project in the region and it is the objective to now maximise value
for all stakeholders."
Krisztian Toth, Chairman of the Board of Pasofino, commented:
"We are excited to consolidate the ownership of the world class
Dugbe Project under Pasofino. By consolidating ownership of the
Dugbe Project, Hummingbird and Pasofino are better placed to
execute on the strategic review process being undertaken to
identify opportunities to generate maximum value for each of our
stakeholders."
ABOUT THE DUGBE GOLD PROJECT
The 2,559 km(2) Dugbe Gold Project is in southern Liberia and
situated within the southwestern corner of the Birimian Supergroup
which is host to most West African gold deposits. To date, two
deposits have been identified on the Project; Dugbe F and Tuzon
discovered by Hummingbird in 2009 and 2011 respectively. The
deposits are located within 4 km of the Dugbe Shear Zone which is
thought to have played a role in large scale gold mineralization in
the area.
A significant amount of exploration in the area was conducted by
Hummingbird up until 2012 including 74,497 m of diamond coring.
Pasofino drilled an additional 14,584 metres at Tuzon and Dugbe
during 2021. Both deposits have Mineral Resource Estimates dated 17
November 2021 with total Measured and Indicated of 3.3 Moz with an
average grade of 1.37 g/t Au, and 0.6 Moz in Inferred. Following
the completion of the Feasibility Study in June 2022 a Mineral
Reserve Estimate was declared, based on the open-pit mining of both
deposits over a 14-year Life of Mine. A technical report for the
Dugbe Gold Project was prepared in accordance with National
Instrument 43-101 and filed on SEDAR at www.sedar.com and on the
Company's website.
Highlights of the Feasibility Study as previously announced
include:
Strong financial metrics :
- Pre-tax NPV5% of USD690M (USD530M post-tax), 26.35% IRR (23.6%
post-tax) at a base gold price of USD1,700/oz.
- Fast capital payback of approximately 3.5 years from start of production:
- Life of mine (LOM) All In Sustaining Cost (AISC) of USD1,005oz and USD29/t cash cost.
- Pre-production capital requirement of USD397M excluding
owners' costs for a 5Mtpa processing plant.
Large Mineral Reserve with potential for expansion:
- 2.27Moz gold produced over a 14-year LOM.
- Average annual production of 200,000oz for the first 5 years.
- 2.76Moz of Mineral Reserves.
- Additional 67koz of Inferred Mineral Resources within the FS
pit and immediate sidewalls which have not been included in the
Mineral Reserves.
Simple project with economies of scale :
- LOM strip ratio of 4.21:1 highlighted by a low 3.56:1 ratio in the first five years.
- Simple (Gravity-CIL) process flow sheet which enhances project economics.
- Low power costs of USD0.175/kWh, with opportunities for
long-term savings with alternative renewable energy sources.
In addition to the existing deposits there are many gold
prospects within the Project including the Bukon Jedeh area and the
DSZ target on the Tuzon-Sackor trend where Pasofino has discovered
a broad zone of surface gold mineralisation in trench and outcrop
along strike from Tuzon. At this and several of the other prospects
no drilling has been carried out to date.
In 2019, Hummingbird signed a 25-year Mineral Development
Agreement ("MDA") with the Government of Liberia providing the
necessary long-term framework and stabilization of taxes and
duties. Under the terms of the MDA, the royalty rate on gold
production is 3%, the income tax rate payable is 25% (with credit
given for historic exploration expenditures), the fuel duty is
reduced by 50%, and the Government of Liberia is granted a free
carried interest of 10% in the Project.
About Pasofino Gold Ltd.
Pasofino Gold Ltd. is a Canadian-based mineral exploration
company listed on the TSX-V (VEIN). Pasofino, through its
wholly-owned subsidiary, owns a 49% economic interest (prior to the
issuance of the Government of Liberia's 10% carried interest) in
the Dugbe Gold Project. Pasofino has exercised its option to
consolidate ownership in the Dugbe Gold Project by requiring
conversion of Hummingbird's 51% ownership of the Project for a 51%
shareholding in Pasofino, such that Pasofino would own 100% of the
Project (prior to the government of Liberia's 10% carried
interest), subject to the receipt of all required government, TSX
Venture Exchange and shareholder approvals.
For further information please visit www.hummingbirdresources.co.uk or contact:
Daniel Betts, Hummingbird Resources Tel: +44 (0) 20
CEO plc 7409 6660
Thomas Hill,
FD
Anthony Köcken,
COO
Edward Montgomery,
CSO & ESG
James Spinney Strand Hanson Limited Tel: +44 (0) 20
Ritchie Balmer Nominated Adviser 7409 3494
---------------------- ----------------------------
James Asensio Canaccord Genuity Tel: +44 (0) 20
Gordon Hamilton Limited 7523 8000
Broker
---------------------- ----------------------------
Bobby Morse Buchanan Tel: +44 (0) 20
George Cleary Financial PR/IR 7466 5000
Email: HUM@buchanan.uk.com
---------------------- ----------------------------
Notes to Editors:
Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold production, development and exploration
Company, member of the World Gold Council and founding member of
Single Mine Origin (www.singlemineorigin.com). The Company
currently has two core gold projects, the operational Yanfolila
Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which
will more than double current gold production when production,
scheduled for first gold pour end of Q2 2023. Further, the Company
has a controlling interest in the Dugbe Gold Project in Liberia
that is being developed by Pasofino Gold Limited through an earn-in
agreement. The final feasibility results on Dugbe showcase 2.76Moz
in Reserves and strong economics such as a 3.5-year capex payback
period once in production, 14-year life of mine at a low AISC
profile of US$1,005/oz. Our vision is to continue to grow our asset
base, producing profitable ounces, while central to all we do being
our Environmental, Social & Governance ("ESG") policies and
practices.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFLFVVLSLLIIF
(END) Dow Jones Newswires
November 01, 2022 09:39 ET (13:39 GMT)
Hummingbird Resources (AQSE:HUM.GB)
Historical Stock Chart
From Nov 2024 to Dec 2024
Hummingbird Resources (AQSE:HUM.GB)
Historical Stock Chart
From Dec 2023 to Dec 2024
