Hummingbird Resources PLC Mineral Development Agreement with Gov of Liberia (6525X)
May 01 2019 - 1:00AM
UK Regulatory
TIDMHUM
RNS Number : 6525X
Hummingbird Resources PLC
01 May 2019
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
1 May 2019
Hummingbird Resources plc
Mineral Development Agreement with Government of Liberia
Hummingbird Resources plc ("Hummingbird" or the "Company") (AIM:
HUM), is pleased to announce an update on the 25-year Mineral
Development Agreement ("MDA") with the Government of Liberia
("GoL") over a land package of approximately 2,000km(2) , which
includes the Company's 4.2Moz Dugbe Gold Project ("Dugbe").
The MDA has now been signed with the Government of Libera,
attested to by the Minister of Justice, ratified by the National
Legislature of the Republic of Liberia, approved into law by the
President of the Republic of Liberia and published in handbills
signifying the completion of all necessary steps for the MDA to
become immediately effective. This will provide the necessary
long-term stability and framework for the next steps at Dugbe. The
Dugbe MDA is the first gold MDA to be negotiated with the
Government of Liberia following a discovery in over 10 years and
represents a huge milestone for both the Government and the
Company.
Highlights
-- 25-year renewable MDA signed with the GoL
-- Provides necessary long-term framework for further
exploration, feasibility studies, mine development, production and
ultimately mine closure
-- Initial three-year exploration term, with ability to extend
MDA into additional areas with geological continuity
-- Flexibility to develop more than one mine and continue exploration on a regional scale
-- Fiscal terms include
o Stabilisation of taxes and duties for 15 years (the maximum
permitted under Liberian law)
o GoL to be granted a 10% free carried shareholding in the
project (HUM's post interest: 90%)
o Royalty of 3%, Income tax rate of 25%
o Initial signature bonus payable to GoL of US$1.5m
o Community development funds to be established in partnership
with GoL and the communities.
Dan Betts, CEO of Hummingbird Resources commented,
"The completion of the MDA is an important milestone for
Hummingbird and Liberia. Hummingbird, with this agreement in place,
can now look towards taking the next steps at Dugbe in the best
interests of all stakeholders.
The Dugbe Gold Project was Hummingbird's first asset and the
original permit that was granted to Hummingbird sits within this
MDA area. A number of our existing team (both in Liberia and in the
UK) have been involved in this project for over a decade and I am
pleased they are still part of the team at this critical juncture.
I am proud to say that we developed the largest gold asset in
Liberia from grass roots exploration and, while our recent focus
has been in Mali, the significance and scale of this asset is not
to be underestimated. We look forward to updating the market
further as we develop our plans."
Molewuleh B. Gray, Chairman of the National Investment
Commission of Liberia, commented,
"Our Government is committed to resuscitating the mining sector.
H.E President George Manneh Weah, in support of our 5-year
Development Plan, continues to drive reforms to demonstrate to the
world that Liberia is open and ready for business."
Further Information
The Dugbe Gold Project has Resources currently totalling 4.2Moz
of gold and a completed NI 43-101 compliant PEA on the project
showing a 29% IRR and US$186m NPV at a US$1,300 gold price. The
Project is the largest gold project in Liberia and is complemented
with an extremely large and largely unexplored land holding, with a
number of potentially significant targets identified from early
stage work including aeromagnetic surveys and stream sampling.
**ENDS**
For further information please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts, Hummingbird Resources plc Tel: +44 (0) 20 7409
CEO 6660
Thomas Hill,
FD
Robert Monro,
IR
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
James Bellman Nominated Adviser
-------------------------- ----------------------
Martin Davison Canaccord Genuity Limited Tel: +44 (0) 20 7523
James Asensio 8000
Broker
-------------------------- ----------------------
Gordon Poole Camarco Tel: +44 (0) 20 3 757
Owen Roberts 4980
Ollie Head Financial PR/IR
-------------------------- ----------------------
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a leading gold production,
development and exploration company. The Company has two core gold
projects, the Yanfolila Gold Mine in Mali and the Dugbe Gold
Project in Liberia. Yanfolila produced its first gold pour on time
and budget in December 2017. Yanfolila held pre-production Probable
Reserves of 709,800oz @ 3.14g/t, total Resources of 1.8Moz of gold
and an additional 390,700oz of non-compliant exploration potential.
The Dugbe Gold Project has Resources currently totalling 4.2Moz of
gold and a completed NI 43-101 compliant PEA on the project showing
a 29% IRR and US$186m NPV at a US$1,300 gold price.
In addition to Hummingbird's production and development assets,
the Company also has an exploration footprint of 4,000km2 and a 18%
interest in AIM listed Cora Gold, which is advancing a portfolio of
prospects in Mali and Senegal.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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