Increases Stake in Yanfolila Ahead of Production

RNS Number : 8645H

Hummingbird Resources PLC

13 June 2017

 

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

13 June 2017

Hummingbird Resources plc ("Hummingbird" or "the Company")

Increases Stake in Yanfolila Gold Project to 80% Ahead of Production by Year-End

Hummingbird Resources (AIM: HUM) is pleased to announce it has acquired an additional 5% interest and a 1% royalty in the Yanfolila Gold Project in Mali ("Yanfolila" or "the Project") for US$2 million, increasing its stake to 80% ahead of its first gold pour from Yanfolila targeted by the end of 2017. 

Highlights:

·   Hummingbird has agreed to take up its option with La Petite Mine d'Or ("LPMDO") to acquire its 5% interest in the Project for the US$1 million

·    In addition the Company negotiated the acquisition of the 1% royalty LPMDO had over the Project for a further US$1 million

·    The Company now has an 80% interest in the Project (previously 75%)

·    3% royalty to the Government of Mali ("GoM") over the Project remains

·    US$2 million to be paid in shares on 31 March 2018

Dan Betts, CEO of Hummingbird, commented: 

"Finalising a previously agreed acquisition of the LPMDO minority interest is another exciting step forward as we close in on our first gold pour from Yanfolila.  Additionally, by reducing the royalties over the Project we have further increased the benefit to Hummingbird as we firmly believe the mine life will increase significantly as we convert further Resources into Reserves once we are in production. 

"We continue to make excellent progress on site and as a result we continue to advance Yanfolila to production both on time and on budget." 

Further information:

When the Company acquired the Project the GoM had a 10% free carried interest and LPMDO had a 5% interest in the Project.  The GoM also had the right to acquire an additional 10% interest in the Project that it exercised in February 2017 for US$11 million taking its stake to 20%.  As a result of this acquisition the total royalty over the Project has been reduced to the 3% due to the GoM. 

The consideration of US$2m due to LPMDO will be satisfied though the issue of 6,197,353 ordinary 1p shares in Hummingbird which are expected to be issued on 31 March 2018. 

**ENDS**

For further information, please visit www.hummingbirdresources.co.uk or contact: 

Daniel Betts Thomas Hill Robert Monro	Hummingbird Resources plc	Tel: [phone]
James Spinney Ritchie Balmer James Bellman	Strand Hanson Limited Nominated & Financial Adviser	Tel: [phone]
Jon Belliss	Beaufort Securities Limited Broker	Tel: [phone]
Lottie Brocklehurst Susie Geliher	St Brides Partners Ltd Financial PR/IR	Tel: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

About Hummingbird Resources Plc

Notes to Editors

Hummingbird Resources (AIM: HUM) is building a leading gold production, development and exploration company.  The Company has two core gold projects, the near-term production Yanfolila Gold Project in Mali and the Dugbe Gold Project in Liberia.  It is currently building Yanfolila targeting first production by the end of 2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total Resources of 1.8Moz of gold and an additional 390,700oz of non-compliant exploration potential.  The high-grade gold project has low operating costs of US$695/oz AISC with 132,000oz of first full year's production. 

The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird with excellent development upside.  An optimisation of the DFS is on-going whilst Yanfolila is brought to production in the near-term.  Additionally, the Company has 4,000km² highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets.

 

END

 

 

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