Dugbe Gold Project Financing

RNS Number : 7929Z

Hummingbird Resources PLC

23 September 2020

 

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

23^rd September 2020

Hummingbird Resources plc  

("Hummingbird" or the "Company") 

Dugbe Gold Project Financing

Hummingbird Resources plc (AIM: HUM) provides an update on the Dugbe Gold Project ("Dugbe Project" or the "Project") and the acquisition of ARX Resources Limited ("ARX") by Pasofino Gold Limited (TSXV: VEIN) ("Pasofino").

Pasofino announced yesterday the closing of the previously announced acquisition of ARX, the Company's joint venture partner for the Dugbe Project in Liberia, and completion of a C$10,020,000 equity financing (the "Fundraise").  For release details please follow the link here .

Pasofino plans to use the net proceeds from the Fundraise for exploration and development work at the Dugbe Project.  As previously announced, Pasofino will earn its 49% stake of the Project once certain criterions are met over a two year earn in period including:

§ Completion of a mutually agreed exploration programme; and

§ Completing a Definitive Feasibility Study, under joint management committee oversight.

In addition, Pasofino will cover all overhead and operating costs associated with the Project during the earn in period.

We note progress has already been made by both Pasofino and Hummingbird at its joint management committees to progress the Dugbe Project.  With funding now secure the Company  will provide further updates to the market as the Project's development accelerates from here on.

Dan Betts, CEO of Hummingbird, commented:  

"We note the closing of the Pasofino financing and are excited to see work commencing on the Dugbe Project now that the qualifying conditions to commence the earn in have been met. The Dugbe Project already has a significant mineral endowment which Hummingbird discovered from first principles and we are very excited to support Pasofino in its work to both prove the robust economics of the Project and to showcase what we believe to be a world class gold province which is still in the embryonic stages of discovery. "

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.

About Pasofino Gold Limited:

Is a Canadian-based mineral exploration company. For further information, please visit www.pasofinogold.com

**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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