Hummingbird Resources has announced the completion of the acquisition of the Kouroussa Gold Project, located in Guinea, with ownership now formally having been transferred from Cassidy Gold Corp to the Company.
The Company is now awaiting to be awarded the mining licence for the Project from the Government of Guinea.
Once awarded, the Company will pay the initial consideration of £10 million, which will be satisfied through the issue of 35,248,441 new Ordinary Shares in the Company at a price of 28.4 pence. This represents 9.0% of the enlarged share capital of the Company.
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All other terms of the transaction are as announced on 26 June 2020, which can be found here.
Dan Betts, CEO of Hummingbird, commented:
“I am delighted to announce we have now completed the acquisition of the Kouroussa Gold Project from Cassidy.
“We now eagerly await the awarding of the mining licence from the Government of Guinea and look forward to working with them to develop this exciting project as partners for the benefit of all stakeholders.
“Our dedicated project management team have started development plans and the permitting process as we highlighted in our recent 1H2020 interim results.
“The completion of the acquisition gives us further confidence to advance with these initiatives to bring Kouroussa into production and transform Hummingbird into a multi-asset producing resources company.”
The Kouroussa Gold Project:
The Project is a near term development asset in the prolific Siguiri Basin, situated near the town of Kouroussa in the Kouroussa Prefecture in eastern Republic of Guinea.
Kouroussa has a high grade mineral resource of 1.18Moz of gold at over three grams per tonne, a lucrative pre-tax NPV10 of $110 million and an IRR of 51.2% (at $1,350/oz gold price).
The synergies between the Project and Hummingbird’s existing producing Yanfolila Mine, enable the Company to use similar metallurgical flow sheet and process plant design to leverage construction and, operational expertise.
Ultimately, fast tracking the mine into production to produce circa 100,000 oz per annum at an AISC of around US$800 over an initial five year Life of Mine.