Through the Mou Hummingbird Resources and private gold junior Kola Gold will amalgamate certain of their non-core gold exploration permits in Mali together with a number of Kola’s permits in Mali and Senegal and is in the process of creating a new company called Cora Gold to hold these permits.
Together the companies will establish a portfolio of over 10 highly prospective gold exploration properties with Kola totalling in excess of 1 600 km2 located in two significant gold areas, the Kenieba Window in Mali and Senegal and the Yanfolila Gold Belt in Mali.
The objective is to expedite development and provide value upside from non-core exploration assets through a 43% interest in Cora Gold without diverting cash resources from flagship assets, being:
-2.2 Moz Yanfolila gold project in Mali, where construction is commencing shortly;
-4.2 Moz Dugbe gold project in Liberia
The amalgamation is conditional on Cora Gold raising at least US$4 million from third parties, due diligence and final documentation by 30 September 2016.
Buy-back and royalty rights over the four permits closest to Hummingbird Resources’ Yanfolila gold project could add significant upside to its +100 000 ozpa production commencing in 2017 together with the +1 Moz outside of the current mine plan.
Dan Betts, MD of Hummingbird Resources, says the transaction doubles its exploration exposure in Mali and provides them with an introduction to Senegal and exciting new mineralised ground, where they are currently focused on bringing Yanfolila, one of Africa’s highest margin undeveloped gold projects, to production next year.
“With a dedicated exploration team that we know and trust that has extensive experience in these gold belts and a budget to explore we look forward to unlocking the exploration value together with Kola,” says Betts.
“Should these exploration efforts be fruitful, we have buy-back and royalty rights over the permits closest to Yanfolila which could add significant upside to our current mine plan as we bring Yanfolila into production in 2017. ”
Additionally, Betts explains that owing to the presence of the mine at Yanfolila, any high grade proximal discoveries will instantly be more valuable to Cora Gold because they will be able to be processed at Yanfolila without the necessary capex to build a new mine.
“I look forward to providing further updates on the amalgamation process in due course,” he says.