Hummingbird Resources PLC Shareholder Agreement with the Government of Mali (8015V)
02 February 2017 - 6:00PM
UK Regulatory
TIDMHUM
RNS Number : 8015V
Hummingbird Resources PLC
02 February 2017
Ticker: HUM / Index: AIM / Sector: Mining
Hummingbird Resources plc ("Hummingbird" or "the Company")
Shareholder Agreement with the Government of Mali
Hummingbird Resources (AIM: HUM), is pleased to announce it has
signed a shareholder agreement ("the Shareholder Agreement") with
the Government of Mali ("the Government") in respect of Société des
Mines de Komana SA ("SMK"), the mining company incorporated in Mali
to hold the Komana Mining Permit, which contains the Yanfolila Gold
Project ("Yanfolila", "the Project" or "the Permit"), which is 95%
owned by Hummingbird.
Highlights:
-- Government to pay Hummingbird approximately US$11 million for
an additional 10% stake in the Project
-- Agreement concluded on Government's 10% free carried interest in Yanfolila
-- Government to take, as anticipated, an overall 20% interest
in Yanfolila showing commitment and support
Dan Betts, CEO of Hummingbird Resources, said: "The Government
of Mali continues to be a committed and willing partner of
Hummingbird as we work together to unlock the significant value of
Yanfolila. I am delighted to see that the Government has exercised
its option to increase its interest in the Project through the
acquisition of an additional 10% of Société Des Mines De Komana for
a consideration of US$11 million. I believe this is a clear signal
of the Government's appreciation of the enormous value accretion
potential of Yanfolila in the long term.
"We are grateful to the Government of Mali for their support and
look forward to the months ahead as we work towards our objective
of delivering our first gold pour by year end."
Professor Tiémoko Sangare, Minister of Mines in Mali, said:
"Bringing a new Malian mine into production is a tremendous
achievement for all concerned and is the culmination of many years
of investment and commitment by Hummingbird. Yanfolila's transition
into a producing asset over the next 12 months will crystallise the
value of this important national asset and will make tangible
contributions to Mali through the generation of revenue, creation
of employment and other ancillary benefits."
Further Information:
The signing of the Shareholder Agreement confirms the terms of
the Government of Mali's participation in SMK and enables the
Company to proceed with the process of issuing the Government of
Mali its 10% free carried shares, which are non dilutable and carry
the right to a priority dividend. The Government of Mali has also
confirmed that it is exercising its right to acquire an additional
10% of SMK for a consideration of CFA6,624,516,660 (approximately
US$11 million). The first instalment of CFA600,000,000 (US$1
million) payable by the Government of Mali will be satisfied in
settlement of an equivalent sum owed by SMK to the Malian
Government in respect of historical costs and payment terms for the
balance are expected to be agreed in due course. Once the
consideration is paid in full, these additional shares will rank
pari passu with all other shares (except the 10% free carried
shares). Additionally, the Government of Mali has the right to
appoint two directors to SMK.
The key terms of the fiscal regime for SMK also include:
-- Royalty of 3%
-- Tax rate of 30% (minimum tax of 1% of gross revenue) after
deduction of depreciation, recovery of historic costs, carry
forward losses
-- Fuel duty exemption
-- VAT holiday until three years post commencement of production
Please click on the following link to see recent pictures and
videos of construction http://hummingbirdresources.co.uk/gallery/.
This page will continue to be updated regularly.
**ENDS**
For further information, please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts Hummingbird Resources Tel: +44 (0) 20
Thomas Hill plc 3416 3560
Robert Monro
-------------------- ----------------------- ----------------
James Spinney Strand Hanson Limited Tel: +44 (0) 20
Ritchie Balmer Nominated & Financial 7409 3494
James Bellman Adviser
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Jon Belliss Beaufort Securities Tel: +44 (0) 20
Limited 7382 8300
Broker
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Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Susie Geliher Ltd 7236 1177
Financial PR/IR
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About Hummingbird Resources Plc
Notes to Editors
Hummingbird Resources (AIM: HUM) is building a leading gold
production, development and exploration company. The Company has
two core gold projects: the near-term production Yanfolila Gold
Project in Mali and the Dugbe Gold Project in Liberia. It is
currently building Yanfolila targeting first production by end of
2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total
Resources of 1.8Moz of gold and an additional 390,700oz of
non-compliant exploration potential. The high-grade gold project
has low operating costs of US$695/oz AISC with 132,000oz of first
full year's production.
The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird
with excellent development upside. An optimisation of the DFS is
on-going whilst Yanfolila is brought to production in the
near-term. Additionally, the Company has 4,000km(2) highly
prospective exploration ground in Mali and Liberia and is
constantly evaluating new quality assets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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