Hummingbird Resources PLC Increases Stake in Yanfolila Ahead of Production (8645H)
13 June 2017 - 4:00PM
UK Regulatory
TIDMHUM
RNS Number : 8645H
Hummingbird Resources PLC
13 June 2017
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
13 June 2017
Hummingbird Resources plc ("Hummingbird" or "the Company")
Increases Stake in Yanfolila Gold Project to 80% Ahead of
Production by Year-End
Hummingbird Resources (AIM: HUM) is pleased to announce it has
acquired an additional 5% interest and a 1% royalty in the
Yanfolila Gold Project in Mali ("Yanfolila" or "the Project") for
US$2 million, increasing its stake to 80% ahead of its first gold
pour from Yanfolila targeted by the end of 2017.
Highlights:
-- Hummingbird has agreed to take up its option with La Petite
Mine d'Or ("LPMDO") to acquire its 5% interest in the Project for
the US$1 million
-- In addition the Company negotiated the acquisition of the 1%
royalty LPMDO had over the Project for a further US$1 million
-- The Company now has an 80% interest in the Project (previously 75%)
-- 3% royalty to the Government of Mali ("GoM") over the Project remains
-- US$2 million to be paid in shares on 31 March 2018
Dan Betts, CEO of Hummingbird, commented:
"Finalising a previously agreed acquisition of the LPMDO
minority interest is another exciting step forward as we close in
on our first gold pour from Yanfolila. Additionally, by reducing
the royalties over the Project we have further increased the
benefit to Hummingbird as we firmly believe the mine life will
increase significantly as we convert further Resources into
Reserves once we are in production.
"We continue to make excellent progress on site and as a result
we continue to advance Yanfolila to production both on time and on
budget."
Further information:
When the Company acquired the Project the GoM had a 10% free
carried interest and LPMDO had a 5% interest in the Project. The
GoM also had the right to acquire an additional 10% interest in the
Project that it exercised in February 2017 for US$11 million taking
its stake to 20%. As a result of this acquisition the total royalty
over the Project has been reduced to the 3% due to the GoM.
The consideration of US$2m due to LPMDO will be satisfied though
the issue of 6,197,353 ordinary 1p shares in Hummingbird which are
expected to be issued on 31 March 2018.
**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
Jon Belliss Beaufort Securities Tel: +44 (0) 20
Limited 7382 8300
Broker
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Susie Geliher Ltd 7236 1177
Financial PR/IR
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
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 the 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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