Ghana – AIM-listed Hummingbird Resources, the West African gold junior, has agreed to sell its wholly-owned subsidiary Ensign Resources to Taoudeni Resources, a private West African exploration business.
This is in line with its strategy to focus on developing its 6 Moz gold inventory at its core projects in West Africa, including the Yanfolila gold project in Mali, which it is now advancing into construction.
Ensign Resources owns Antubia Resources, a Ghanaian company that holds 100% of the Asheba licence in Ghana. Asheba, aquired by Hummingbird from Gold Fields in 2014 as part of the acquisition of the Yanfolila project, has a gold inventory of 176 000 oz of gold grading at at 1.8 g/t, as estimated by Gold Fields.
The transaction will see Hummingbird receive 10% of the total share capital of Taoudeni, as well as a discovery bonus of US$1/oz in 500 000 oz increments on discovery at Asheba.
Hummingbird will retain the right to buy back a 10% interest in the project for $7 million upon publication of a feasibility study by the buyer.
“This transaction allows us to participate in the upside of both Asheba and Taoudeni as its team unlock the gold project’s potential value with no capital commitment required by Hummingbird.
“With earthworks underway at our flagship Yanfolila gold project we remain focused on delivering our first gold pour and near term cashflow,” says Hummingbird Resources CEO Dan Betts.
Taoudeni Resources executive director Niall Tomlinson adds: “Asheba is a complimentary asset to our interests elsewhere in West Africa. In addition to the defined gold mineralisation from exploration undertaken by Gold Fields, we believe there is significant potential for the delineation of additional gold mineralisation.
“The large historic database that includes over 20 000 m of reverse circulation and diamond core data provides us with an opportunity to efficiently deliver a maiden JORC compliant mineral resource estimate and we are looking forward to advancing the project through an initial campaign of data validation including re-sampling of the core that is present at the project.”