Liberia – Hummingbird Resources, the AIM-listed West African gold junior, has signed a 25 year mineral development agreement with the Government of Liberia (GoL) for the 2 000 km2 Dugbe Shear Zone, containing its 4.2 Moz Dugbe gold project.

The MDA has been signed with the GoL, and is expected to be signed by the President of Liberia shortly. Thereafter the MDA will be sent for ratification by the National Legislature of the Republic of Liberia following which the MDA will be passed into law. This will provide the necessary long- term stability and framework for the Dugbe gold project to be developed and operated.

Overview:

  • 25 year MDA Agreement with the GoL with option to extend by mutual consent;
  • Provides necessary long-term framework and stabilisation of taxes and duties;
  • Agreed royalty rate on gold production of 3% ;
  • Income tax rate of 25%, with credit given for historic exploration expenditures;
  • Fuel duty reduced by 50% (75% for first five years of production if gold price is below USD$1 500);
  • GoL to be granted free carried interest of 10% in the Dugbe gold project;
  • Signed through the company’s wholly owned subsidiary Hummingbird Resources (Liberia); and
  • Community development fund to be established by the company.

Dan Betts, CEO of Hummingbird Resources comments, “This is a landmark moment for Hummingbird and Liberia.   The agreement demonstrates the Government of Liberia’s understanding of and commitment to the country’s mining industry and will allow us to move forward on the 4.2 Moz Dugbe gold project.”

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