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Hummingbird Resources PLC - the African gold producer - signed a conditional binding sale & purchase agreement confirming and setting out the key terms for the acquisition of the Kouroussa gold project, located in Guinea from Cassidy Gold Corp. Initial consideration of GBP10 million satisfied through the issue of 35.2 million Hummingbird new shares at 28.4 pence. Deferred consideration of GBP10 for every ounce of gold reserve published in excess of 400,000 ounces, subject to a maximum of 1.0 million ounces, or GBP6 million. Additionally, Cassidy will retain a 2% net smelter royalty on all gold sales by or on behalf of Hummingbird Resources over and above the first 200,000 ounces of its production and sales, subject to a maximum of 2.2 million ounces of production and sales.
Hummingbird Resources has also completed a more in-depth review of the project's geological database, which highlights promising drill intersections both within and outside the current stated mineral resource used in the mine plan. These drill intersections demonstrate the high grade nature of the targets proximal to the project and within the permit area. All deposits remain open and further exploration work is required to enable Hummingbird to fully evaluate the potential of the project.
Current stock price: 29.30 pence
Year-to-date change: up 34%
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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