JOHANNESBURG (miningweekly.com) – Aim-listed Hummingbird Resources has entered into a memorandum of understanding to combine certain of its noncore exploration permits in Mali with Africa-focused exploration company Kola Gold’s permits in Mali and Senegal.
The parties were working to establish a new company Cora Gold, in which Kola would hold a 57% stake and Hummingbird 43%, to hold a portfolio of ten highly prospective gold exploration properties in two significant gold areas – the Kenieba Window in Mali and Senegal and the Yanfolila gold belt in Mali.
Hummingbird’s Yanfolila gold project, which was expected to move into production in 2017, would not form part of the agreement with Kola.
“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, while allowing us to remain absolutely focused on the development of the Yanfolila gold mine,” Hummingbird MD Dan Betts commented in a statement issued on Wednesday.
The amalgamation of the permits would only proceed if Cora Gold was able to raise at least $4-million from third parties and would also be subject to the signing of final documentation by September 30.