Gold ore mining company, Hummingbird Resources (HUM) has agreed to acquire Kouroussa Gold Project in Guinea from Cassidy Gold.

The project is a near-term development asset located in the South West corner of the Siguiri basin that has high-grade mineral resource of 1.18 million tonnes of gold (Moz) of gold at >3g/t.

The acquisition is expected to make Hummingbird a near-term multi-asset producer with jurisdictional diversification in line with the company’s strategy.

The project will be acquired for an initial consideration of £10m satisfied through the issue of more than 35.2-million Hummingbird new ordinary shares at 28.4p a share.

HUM said that the Cassidy will also retain a 2% net smelter royalty on all gold sales by or on behalf of the company over and above the first 200,000 oz of its production and sales up to a maximum of 2.2M ounces of production and sales.

First gold production at the Kouroussa project is targeted within 2 years

The completion of the acquisition is subject approval from the Government of Guinea for the change of control of Cassidy Guinea.

Hummingbird CEO Dan Betts said: “Kouroussa is a high grade, high margin project with a number of similarities and synergies with Yanfolila which we are confident we can harness to our advantage.

“Our plan is to spend the next 6 months refining the detailed engineering and design of the project whilst initiating construction and ordering long lead items, with an aggressive timetable to try to accelerate the build and pour gold within two years of the acquisition.”

The firm said that the first gold production at the project is targeted within 2 years, with the production of approximately 100 000 oz/y and an all-in sustaining cost (AISC) of about $800/oz over an initial five-year life-of-mine (LoM).

In May last year, Hummingbird Resources and the Liberian government signed a 25-year mineral development agreement (MDA) that paves the way for the development of Hummingbird’s 4.2-million-ounce Dugbe gold project.