Restart of Corica Operations at Kouroussa

Hummingbird Resources PLC

17 May 2024

 

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

17 May 2024

Hummingbird Resources plc

("Hummingbird", the "Group", or the "Company")

Restart of Corica Operations at Kouroussa and Corporate Update

Hummingbird (AIM: HUM) is pleased to announce the remobilisation of Corica Mining Services ("Corica") at the Kouroussa Gold Mine in Guinea ("Kouroussa") following the suspension of work by Corica on 17 March 2024.

The Company also notes that, as part of ongoing efforts to mitigate risk around its working capital position as a result of the recent interruptions, CIG SA ("CIG"), the Company's largest shareholder, has agreed to provide a US$10 million loan to the Company in order to ensure continuity of operations during this re-ramping up phase of mining operations.

Restart of Corica Operations at Kouroussa

Hummingbird and Corica (the "Parties") have agreed to remobilise Corica equipment to site and continue the ramp-up in operations towards commercial production at Kouroussa.

Key highlights include:

·      All Corica equipment has been mobilised and arrived at site, with operations having already commenced.

·      An agreed operational plan is being implemented by Corica and is anticipated to fully ramp up by the beginning of Q3-2024. The plan will be augmented by the previously announced additional ETASI fleet, which is currently being mobilised, and is expected at site over the coming weeks.

·      The agreement between the Parties to remobilise outlines a framework for negotiating and resolving key disputes, including the parties' respective claims under the terms of the mining contract.

Corporate Update

To facilitate a smooth transition back to full operations by Corica, CIG has agreed to provide the Company with a short-term loan of US$10 million (the "CIG Loan"). The CIG Loan will be provided in tranches, is unsecured, attracts interest at a rate of 14% per annum and has a maturity date of 30 September 2024, which can be extended by mutual agreement.

The Company remains in discussions with its primary lender, Coris Bank International ("Coris"), surrounding the mitigation of the financial impacts of the suspension in operation and will provide an update in due course.

Dan Betts, CEO of Hummingbird, commented:

"The agreement to remobilise Corica at Kouroussa demonstrates a commitment from both parties in finding a practical solution to the ongoing disputes. I am hopeful that this provides the framework for constructive discussions to resolve and re-base our relationship with Corica.

Our ongoing discussions with Coris, together with CIG's support, provide us with a platform to enable a smooth transition back to full operations at Kouroussa. Corica's return to work will allow Hummingbird to increase the mining of the higher-grade material and accelerate our plans to reach our 200 Koz per annum production profile over the coming months. The momentum this brings reiterates our confidence in the strong future ahead for the Kouroussa project.

Clearly this has been a time of stress for the Company, and I would like to thank everybody involved both within Hummingbird and the many stakeholders and suppliers and partners who have been so patient, resilient and diligent in working through this situation."

Related Party Transaction

CIG is classified as a Substantial Shareholder of the Company pursuant to the AIM Rules for Companies (the "AIM Rules"). The Company entering the agreement governing the CIG Loan is accordingly classified as a related party transaction pursuant to the AIM Rules. In this regard, the directors of the Company confirm, having consulted with the Company's nominated adviser, Strand Hanson Limited, that they consider that the terms of the agreement governing the CIG Loan to be fair and reasonable insofar as its shareholders are concerned.

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset, multi-jurisdiction gold producing Company, member of the World Gold Council and founding member of Single Mine Origin (www.singlemineorigin.com). The Company currently has two core gold projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than double current gold production once at commercial production. Further, the Company has a controlling interest in the Dugbe Gold Project in Liberia that is being developed by joint venture partners, Pasofino Gold Limited. The final feasibility results on Dugbe showcase 2.76 Moz in Reserves and strong economics such as a 3.5-year capex payback period once in production, and a 14-year life of mine at a low AISC profile. Our vision is to continue to grow our asset base, producing profitable ounces, while central to all we do being our Environmental, Social & Governance ("ESG") policies and practices.

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

Daniel Betts, CEO Thomas Hill, FD Edward Montgomery, CD	Hummingbird Resources plc	Tel: [phone]
James Spinney Ritchie Balmer	Strand Hanson Limited Nominated Adviser	Tel: [phone]
James Asensio Ana Ercegovic	Canaccord Genuity Limited Broker	Tel: [phone]
Bobby Morse Oonagh Reidy George Pope	Buchanan Financial PR/IR	Tel:  [phone] Email: [e-mail]

 

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