TIDMHUM
RNS Number : 3358Z
Hummingbird Resources PLC
20 May 2021
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
20 May 2021
Hummingbird Resources plc
('Hummingbird' or the 'Company')
Mining Licences granted by the Government of Guinea for the
Kouroussa Gold Project & Total Voting Rights
Hummingbird Resources plc (AIM:HUM) is pleased to announce that
the Company has been granted the mining licences for the Kouroussa
Gold Project in Guinea (the 'Project') by the Government of Guinea
(the "Grant").
Key terms of the mining licences include:
-- 15 year, renewable licence term
-- Mine construction to start within one year
-- 5% royalty payable to the Federal Government of Guinea
-- 1% contribution to Local Development Fund
-- 30% tax on profits
The Government has the right to a 15% non-dilutable free carried
interest in the share capital of Kouroussa Gold Mine SA (the wholly
owned subsidiary of Hummingbird which owns the Project), with the
right to acquire a further 20% participating interest for cash.
The Grant triggers the requirement to pay the initial
consideration of GBP10.0 million to Cassidy Gold Corp ('Cassidy'),
which will be satisfied by issue of shares in Hummingbird as
detailed below.
The Company will further update the market in due course on the
progress at the Project and future plans.
Abdoulaye Magassouba, Minister of Mines, Guinea, commented:
"This project is part of the reinforcement of the industrial
production of gold in Guinea and will have a significant economic
impact in Kouroussa and in the country, while contributing to the
resilience of the mining sector. We look forward to an ongoing
strong relationship with the Company and supporting the development
and running of the operation going forward for the success of all
stakeholders."
Dan Betts, CEO of Hummingbird Resources, commented:
"I am delighted to confirm that we have been granted the mining
licences by the Guinea Government for our Kouroussa Gold Project.
This marks an important step for the Company as we move from being
a single asset producing gold company, towards being a multi-asset
producing gold company in multi-jurisdictions.
"I would like to thank the Government of Guinea and the people
of Kouroussa. We look forward to working with them, and all our
stakeholders, in developing and running a world class gold mine
that embodies industry leading environmental, social and governance
standards that the country, local people and the Company can be
proud of.
"Additionally, I would like to personally thank Saidou Id é ,
our Regional Director in Africa, and his team for their tireless
efforts in working with the Government of Guinea to secure the
mining licences for the Project.
"We look forward to updating the market on our progress and
plans for the Project in the near future."
Further Details
Further to the announcement on 26 June 2020, which set out the
key terms of the Sale and Purchase Agreement for the Company to
acquire the Project, the granting of the mining licences triggers
the requirement to pay the initial consideration of GBP10.0
million, which will be satisfied by issue of 35,248,441 new
ordinary shares in Hummingbird at a price of 28.4 pence per
ordinary share to the beneficial owners of the vendor.
Approximately 85% of these shares are subject to a 12-month lock in
and 12-month orderly market arrangement. Application has been made
for these shares to be admitted to trading on AIM, which is
expected to occur on or around 26 May 2021.
Total Voting Rights
The total number of Ordinary Shares in issue following Admission
will be 392,676,809 and the Company holds no shares in treasury.
Therefore, the total number of Ordinary Shares with voting rights
in the Company will be 392,676,809 .
The above figure of 392,676,809 may be used by shareholders as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in, Hummingbird under the FCA's Disclosure and
Transparency Rules.
**ENDS**
For further information please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts, Hummingbird Resources Tel: +44 (0) 20 7409
CEO plc 6660
Thomas Hill, FD
Edward Montgomery,
CSO & ESG
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer Nominated Adviser 3494
-------------------------- ---------------------
James Asensio Canaccord Genuity Limited Tel: +44 (0) 20 7523
Thomas Diehl Broker 8000
-------------------------- ---------------------
Tim Blythe Blytheweigh Tel: +44 (0) 20 7138
Megan Ray Financial PR/IR 3205
Rachael Brooks
-------------------------- ---------------------
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold production, development and exploration
company and member of the World Gold Council ('WGC'). Hummingbird's
vision is to continue to grow its asset base, producing profitable
ounces, while continuing to focus on its Environmental, Social
& Governance ('ESG') policies and practices. The Company
currently has two core gold projects, the producing Yanfolila Gold
Mine in Mali, and the Kouroussa gold development project in Guinea.
Further, the Company has a controlling interest in the Dugbe Gold
Project in Liberia that is being developed by Pasofino Gold Limited
through an earn-in agreement.
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