Hummingbird Resources (AIM: HUM), is pleased to announce that it has published a video of recent activity on the ground at its Yanfolila Gold Project (“Yanfolila”) in Mali.
Having fully financed Yanfolila in 2016, the Company remains on track to deliver its first gold pour by the end of 2017, targeting 132,000oz in the first year, which will create one of the highest margin gold projects in Africa.
[idz_button color=”default” size=”medium” label=”Photographs documenting ongoing construction from the site” icon=”” link=”http://hummingbirdresources.co.uk/gallery/mali” target=”_blank” type=”square_shape” class=””]
Shareholder Agreement with the Government of Mali RNS.
Hummingbird Resources (AIM: HUM), is pleased to announce it has signed a shareholder agreement (“the Shareholder Agreement”) with the Government of Mali (“the Government”) in respect of Société des Mines de Komana SA (“SMK”), the mining company incorporated in Mali to hold the Komana Mining Permit, which contains the Yanfolila Gold Project (“Yanfolila”, “the Project” or “the Permit”), which is 95% owned by Hummingbird.
· Government to pay Hummingbird approximately US$11 million for an additional 10% stake in the Project
· Agreement concluded on Government’s 10% free carried interest in Yanfolila
· Government to take, as anticipated, an overall 20% interest in Yanfolila showing commitment and support
Dan Betts, CEO of Hummingbird Resources, said: “The Government of Mali continues to be a committed and willing partner of Hummingbird as we work together to unlock the significant value of Yanfolila. I am delighted to see that the Government has exercised its option to increase its interest in the Project through the acquisition of an additional 10% of Société Des Mines De Komana for a consideration of US$11 million. I believe this is a clear signal of the Government’s appreciation of the enormous value accretion potential of Yanfolila in the long term.
“We are grateful to the Government of Mali for their support and look forward to the months ahead as we work towards our objective of delivering our first gold pour by year end.”
Professor Tiémoko Sangare, Minister of Mines in Mali, said: “Bringing a new Malian mine into production is a tremendous achievement for all concerned and is the culmination of many years of investment and commitment by Hummingbird. Yanfolila’s transition into a producing asset over the next 12 months will crystallise the value of this important national asset and will make tangible contributions to Mali through the generation of revenue, creation of employment and other ancillary benefits.”
The signing of the Shareholder Agreement confirms the terms of the Government of Mali’s participation in SMK and enables the Company to proceed with the process of issuing the Government of Mali its 10% free carried shares, which are non dilutable and carry the right to a priority dividend. The Government of Mali has also confirmed that it is exercising its right to acquire an additional 10% of SMK for a consideration of CFA6,624,516,660 (approximately US$11 million). The first instalment of CFA600,000,000 (US$1 million) payable by the Government of Mali will be satisfied in settlement of an equivalent sum owed by SMK to the Malian Government in respect of historical costs and payment terms for the balance are expected to be agreed in due course. Once the consideration is paid in full, these additional shares will rank pari passu with all other shares (except the 10% free carried shares). Additionally, the Government of Mali has the right to appoint two directors to SMK.
The key terms of the fiscal regime for SMK also include:
· Royalty of 3%
· Tax rate of 30% (minimum tax of 1% of gross revenue) after deduction of depreciation, recovery of historic costs, carry forward losses
· Fuel duty exemption
· VAT holiday until three years post commencement of production
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 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.
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