Completion of the acquisition of Kouroussa Project

RNS Number : 5467X

Hummingbird Resources PLC

01 September 2020

 

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

1^st September, 2020

Hummingbird Resources plc  

("Hummingbird" or the "Company") 

Completion of the acquisition of Kouroussa Gold Project  

Further to the Company's announcement on 26 June 2020, Hummingbird Resources (AIM:HUM) is pleased to announce the completion of the acquisition of the Kouroussa Gold Project, located in Guinea, (the "Project") with ownership now formally having been transferred from Cassidy Gold Corp ("Cassidy") to the Company.  

The Company is now awaiting to be awarded the mining licence for the Project from the Government of Guinea. Once awarded, the Company will pay the initial consideration of £10 million, which will be satisfied through the issue of 35,248,441 new Ordinary Shares in the Company at a price of 28.4 pence ("Initial Consideration"). This represents 9.0% of the enlarged share capital of the Company.

All other terms of the transaction are as announced on 26 June 2020, which can be found here. 

Dan Betts, CEO of Hummingbird, commented:  

"I am delighted to announce we have now completed the acquisition of the Kouroussa Gold Project from Cassidy.  We now eagerly await the awarding of the mining licence from the Government of Guinea and look forward to working with them to develop this exciting project as partners for the benefit of all stakeholders.

"Our dedicated project management team have started development plans and the permitting process as we highlighted in our recent 1H2020 interim results.  The completion of the acquisition gives us further confidence to advance with these initiatives to bring Kouroussa into production and transform Hummingbird into a multi-asset producing resources company."

The Kouroussa Gold Project:

The Project is a near term development asset in the prolific Siguiri Basin, situated near the town of Kouroussa in the Kouroussa Prefecture in eastern Republic of Guinea. Kouroussa has a high grade mineral resource of 1.18Moz of gold at over three grams per tonne, a lucrative pre-tax NPV10 of $110 million and an IRR of 51.2% (at $1,350/oz gold price).

The synergies between the Project and Hummingbird's existing producing Yanfolila Mine, enable the Company to use similar metallurgical flow sheet and process plant design to leverage construction and, operational expertise. Ultimately, fast tracking the mine into production to produce circa 100,000oz per annum at an AISC of around US$800 over an initial five year Life of Mine.

**ENDS**  

For further information, including an updated Corporate presentation, please visit www.hummingbirdresources.co.uk or contact:

Daniel Betts, CEO Thomas Hill, FD Edward Montgomery, CSO & ESG	Hummingbird Resources plc	Tel: [phone]
James Spinney Ritchie Balmer	Strand Hanson Limited Nominated Adviser	Tel: [phone]
James Asensio	Canaccord Genuity Limited Broker	Tel: [phone]
Tim Blythe Megan Ray Rachael Brooks	Blytheweigh Financial PR/IR	Tel:  [phone]

Notes to Editors:

Hummingbird Resources (AIM: HUM) is a leading gold production, development and exploration company.  The Company has two core gold projects, the Yanfolila Gold Mine in Mali and the recently acquired Kouroussa Gold Project in Guinea.  Yanfolila produced its first gold pour on time and budget in December 2017.  At 31 October 2019 Yanfolila has a 7.9Mt of Reserve ore @ 2.66 g/t for 676,000ozs gold.  At 31 March 2019 Yanfolila had a total Resource base (inclusive of Reserves) of 28Mt of Ore @ 2.23 g/t for 2,005,300ozs gold. The Kouroussa Gold Project has a Resource base of 1.18Moz @ 3.08 g/t, which will be fast tracked to production, adding an additional c.100,000 oz of gold per annum to its production profile. Hummingbird also has a controlling interest in the Dugbe Gold Project that is expected to be developed by Pasofino Gold Limited (previously ARX Resources Limited) through an earn-in agreement. The Dugbe Gold Project has Resources currently totalling 4.2Moz of gold and a completed NI 43-101 compliant PEA on the project showing a 43% IRR and US$337m NPV at a US$1,500 gold price.

 

END

 

 

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