Hummingbird Resources is a multi-asset, multi-jurisdiction gold production, development and exploration company
Mining Licences granted by the Government of Guinea. (Credit: nettetal10 from Pixabay.)
Hummingbird Resources plc (AIM:HUM) is pleased to announce that the Company has been granted the mining licences for the Kouroussa Gold Project in Guinea (the ‘Project’) by the Government of Guinea (the “Grant”).
Key terms of the mining licences include:
§ 15 year, renewable licence term
§ Mine construction to start within one year
§ 5% royalty payable to the Federal Government of Guinea
§ 1% contribution to Local Development Fund
§ 30% tax on profits
The Government has the right to a 15% non-dilutable free carried interest in the share capital of Kouroussa Gold Mine SA (the wholly owned subsidiary of Hummingbird which owns the Project), with the right to acquire a further 20% participating interest for cash.
The Grant triggers the requirement to pay the initial consideration of £10.0 million to Cassidy Gold Corp (‘Cassidy’), which will be satisfied by issue of shares in Hummingbird as detailed below.
The Company will further update the market in due course on the progress at the Project and future plans.
Abdoulaye Magassouba, Minister of Mines, Guinea, commented:
“This project is part of the reinforcement of the industrial production of gold in Guinea and will have a significant economic impact in Kouroussa and in the country, while contributing to the resilience of the mining sector. We look forward to an ongoing strong relationship with the Company and supporting the development and running of the operation going forward for the success of all stakeholders.”
Dan Betts, CEO of Hummingbird Resources, commented:
“I am delighted to confirm that we have been granted the mining licences by the Guinea Government for our Kouroussa Gold Project. This marks an important step for the Company as we move from being a single asset producing gold company, towards being a multi-asset producing gold company in multi-jurisdictions.
“I would like to thank the Government of Guinea and the people of Kouroussa. We look forward to working with them, and all our stakeholders, in developing and running a world class gold mine that embodies industry leading environmental, social and governance standards that the country, local people and the Company can be proud of.
“Additionally, I would like to personally thank Saidou Idé, our Regional Director in Africa, and his team for their tireless efforts in working with the Government of Guinea to secure the mining licences for the Project.
“We look forward to updating the market on our progress and plans for the Project in the near future.”
Further Details
Further to the announcement on 26 June 2020, which set out the key terms of the Sale and Purchase Agreement for the Company to acquire the Project, the granting of the mining licences triggers the requirement to pay the initial consideration of £10.0 million, which will be satisfied by issue of 35,248,441 new ordinary shares in Hummingbird at a price of 28.4 pence per ordinary share to the beneficial owners of the vendor. Approximately 85% of these shares are subject to a 12-month lock in and 12-month orderly market arrangement. Application has been made for these shares to be admitted to trading on AIM, which is expected to occur on or around 26 May 2021.
Total Voting Rights
The total number of Ordinary Shares in issue following Admission will be 392,676,809 and the Company holds no shares in treasury. Therefore, the total number of Ordinary Shares with voting rights in the Company will be 392,676,809.
The above figure of 392,676,809 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Hummingbird under the FCA’s Disclosure and Transparency Rules.
Source: Company Press Release