Hummingbird Resources has signed a 25-year Mineral Development Agreement (MDA) with the government of Liberia over a land package of approximately 2 000 km2, which includes the company's 4.2Moz Dugbe Gold Project.
Liberia –Hummingbird Resources stated that the MDA has now been signed with the Liberian government and approved into law by the president 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 Hummingbird Resources.
Ready for next steps
Dan Betts, CEO of Hummingbird Resources commented, "The completion of the MDA is an important milestone for Hummingbird Resources 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 Resources’ first asset and the original permit that was granted 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, added,
"Our government is committed to resuscitating the mining sector. President George 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."
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 $186m NPV at a $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.