Hummingbird acquires Guinea gold project
Aim-listed Hummingbird Resources has signed a binding heads of terms agreement for the acquisition of the Kouroussa gold project, in Guinea, from Canadian junior miner Cassidy Gold Corp.
Kouroussa is a near-term development asset in the Siguiri basin and has a high-grade mineral resource of more than 1.1-million tonnes of gold, grading at about 3 g/t.
The project was acquired for an initial consideration of £10-million, which was satisfied through the issue of more than 35.2-million Hummingbird new ordinary shares at 28.4p a share, equal to 9.1% of Hummingbird's enlarged share capital.
Cassidy will also retain a 2% net smelter royalty on all gold sales by or on behalf of the company over and above the first 200 000 oz of its production and sales up to a maximum of 2.2-million ounces of production and sales.
While subject to standard conditions precedent, including government approval, the acquisition of Kouroussa turns Hummingbird into a near-term multi-asset producer with jurisdictional diversification in line with the company’s strategy.
First gold production is targeted within two years, with production of about 100 000 oz/y and an all-in sustaining cost (AISC) of about $800/oz over an initial five-year life-of-mine (LoM).
Hummingbird CEO Dan Betts says the proposed acquisition of Cassidy Guinea and the Kouroussa gold project marks a transformational step in the development of Hummingbird and the execution of its strategy to become a multi-asset gold producer in the near term.
Hummingbird also recently released its 2020 guidance and a five-year rolling mine plan for its Yanfolila gold mine, in Mali, where the company expects to produce between 110 000 oz and 125 000 oz of gold this year at an all-in sustaining cost of $850/oz to $895/oz.
Hummingbird forecasts 574 000 oz will be produced at the mine at an average of more than 120 000 oz/y over the next three years.
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