Mineral Development Agreement with Gov of Liberia

RNS Number : 6525X

Hummingbird Resources PLC

01 May 2019

 

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

1 May 2019

Hummingbird Resources plc

Mineral Development Agreement with Government of Liberia

Hummingbird Resources plc ("Hummingbird" or the "Company") (AIM: HUM), is pleased to announce an update on the 25-year Mineral Development Agreement ("MDA") with the Government of Liberia ("GoL") over a land package of approximately 2,000km², which includes the Company's 4.2Moz Dugbe Gold Project ("Dugbe"). 

The MDA has now been signed with the Government of Libera, attested to by the Minister of Justice, ratified by the National Legislature of the Republic of Liberia, approved into law by the President of the Republic of Liberia and published in handbills signifying the completion of all necessary steps for the MDA to become immediately effective.  This will provide the necessary long-term stability and framework for the next steps at Dugbe.  The Dugbe MDA is the first gold MDA to be negotiated with the Government of Liberia following a discovery in over 10 years and represents a huge milestone for both the Government and the Company.

Highlights

·     25-year renewable MDA signed with the GoL  

·  Provides necessary long-term framework for further exploration, feasibility studies, mine development, production and ultimately mine closure

·     Initial three-year exploration term, with ability to extend MDA into additional areas with geological continuity

·     Flexibility to develop more than one mine and continue exploration on a regional scale

·     Fiscal terms include

o  Stabilisation of taxes and duties for 15 years (the maximum permitted under Liberian law)

o  GoL to be granted a 10% free carried shareholding in the project (HUM's post interest: 90%)

o  Royalty of 3%, Income tax rate of 25%

o  Initial signature bonus payable to GoL of US$1.5m

o Community development funds to be established in partnership with GoL and the communities.

Dan Betts, CEO of Hummingbird Resources commented, 

"The completion of the MDA is an important milestone for Hummingbird and Liberia.  Hummingbird, with this agreement in place, can now look towards taking the next steps at Dugbe in the best interests of all stakeholders.

The Dugbe Gold Project was Hummingbird's first asset and the original permit that was granted to Hummingbird sits within this MDA area.  A number of our existing team (both in Liberia and in the UK) have been involved in this project for over a decade and I am pleased they are still part of the team at this critical juncture.  I am proud to say that we developed the largest gold asset in Liberia from grass roots exploration and, while our recent focus has been in Mali, the significance and scale of this asset is not to be underestimated.  We look forward to updating the market further as we develop our plans."  

Molewuleh B. Gray, Chairman of the National Investment Commission of Liberia, commented,

"Our Government is committed to resuscitating the mining sector. H.E President George Manneh Weah, in support of our 5-year Development Plan, continues to drive reforms to demonstrate to the world that Liberia is open and ready for business."

Further Information

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 29% IRR and US$186m NPV at a US$1,300 gold price. The Project is the largest gold project in Liberia and is complemented with an extremely large and largely unexplored land holding, with a number of potentially significant targets identified from early stage work including aeromagnetic surveys and stream sampling. 

**ENDS**

For further information please visit www.hummingbirdresources.co.uk or contact: 

Daniel Betts, CEO Thomas Hill, FD Robert Monro, IR	Hummingbird Resources plc	Tel: [phone]
James Spinney Ritchie Balmer James Bellman	Strand Hanson Limited Nominated Adviser	Tel: [phone]
Martin Davison James Asensio	Canaccord Genuity Limited Broker	Tel: [phone]
Gordon Poole Owen Roberts Ollie Head	Camarco 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 Dugbe Gold Project in Liberia.  Yanfolila produced its first gold pour on time and budget in December 2017.  Yanfolila held pre-production Probable Reserves of 709,800oz @ 3.14g/t, total Resources of 1.8Moz of gold and an additional 390,700oz of non-compliant exploration potential.  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 29% IRR and US$186m NPV at a US$1,300 gold price.

In addition to Hummingbird's production and development assets, the Company also has an exploration footprint of ~4,000km2 and a 18% interest in AIM listed Cora Gold, which is advancing a portfolio of prospects in Mali and Senegal.

 

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