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Hummingbird in MoU with Kola Gold

By BFN News | 07:48 AM | Wednesday 29 June, 2016

Hummingbird Resources has entered into a memorandum of understanding with Kola Gold Limited. Hummingbird says this is with a view to amalgamating certain of its 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 Inc to hold these permits. Overview: - Establishing a portfolio of over 10 highly prospective gold exploration properties with Kola totalling in excess of 1,600km2 located in two significant gold areas, the Kenieba Window in Mali and Senegal and the Yanfolila Gold Belt in Mali - Objective 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: * 2.2Moz Yanfolila Gold Project in Mali, where construction is commencing shortly; * 4.2Moz Dugbe Gold Project in Liberia - Amalgamation 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 Yanfolila Gold Project which could add significant upside to Hummingbird's +100,000 oz per year production commencing in 2017 together with the +1Moz outside of the current mine plan Managing director Dan Betts said: "This transaction doubles our exploration exposure in Mali and provides us with an introduction to Senegal and exciting new mineralised ground in Mali where we are currently focused on bringing Yanfolila, one of Africa's highest margin undeveloped gold projects, to production next year. The potential upside for Hummingbird is significant, but importantly it allows us to develop exploration potential for the Company whilst allowing us to remain absolutely focused on the development of the Yanfolila Gold Mine. "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. 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, 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." Story provided by

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