Last checked at 10 Jul 2015 07:00
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining
10 July 2015
Hummingbird Resources plc ("Hummingbird" or the "Company")
Mineral Development Agreement signed with Government of Liberia
for 4.2Moz Dugbe Gold Project
Hummingbird Resources plc (AIM: HUM), the West African gold development and exploration company, is pleased to announce that it has signed a 25 year Mineral Development Agreement ('MDA' or 'Agreement') with the Government of Liberia ('GoL') for the 2,000km2 Dugbe Shear Zone, containing its 4.2Moz Dugbe Gold Project, in Liberia. The MDA has been signed with the GoL, and is expected to be signed by the President of Liberia shortly. Thereafter the MDA will be sent for ratification by the National Legislature of the Republic of Liberia following which the MDA will be passed into law. This will provide the necessary long- term stability and framework for the Dugbe Gold Project to be developed and operated.
Overview:
· 25 year MDA Agreement with the GoL with option to extend by mutual consent
· Provides necessary long-term framework and stabilisation of taxes and duties
· Agreed royalty rate on gold production of 3%
· Income Tax rate of 25%, with credit given for historic exploration expenditures
· Fuel duty reduced by 50% (75% for first five years of production if gold price is below US$1,500)
· GoL to be granted free carried interest of 10% in the Dugbe Gold Project
· Signed through the Company's wholly owned subsidiary Hummingbird Resources (Liberia) Inc
· Community Development Fund to be established by the Company
Dan Betts, CEO of Hummingbird Resources commented, "This is a landmark moment for Hummingbird and Liberia. The Agreement demonstrates the Government of Liberia's understanding of and commitment to the country's Mining Industry and will allow us to move forward on the 4.2Moz Dugbe Gold Project.
"The MDA gives us the security of tenure and right to mine for at least the next 25 years, and we look forward to continuing our long and enduring partnership to work with the Government of Liberia to develop Liberia's largest gold deposit."
**ENDS**
For further information please visit www.hummingbirdresources.co.uk or contact:
Daniel Betts Thomas Hill Robert Monro | Hummingbird Resources plc | Tel: +44 (0) 203 416 3560 |
Stewart Dickson Jeremy Stephenson
| Cantor Fitzgerald Europe Nominated Adviser and Joint Broker | Tel: +44 (0) 207 894 7000
|
Jon Belliss | Beaufort Securities Limited Joint Broker | Tel: +44 (0) 20 7382 8300 |
Lottie Brocklehurst Felicity Winkles Hugo de Salis | St Brides Partners Ltd Financial PR/IR | Tel: +44 (0) 20 7236 1177 |
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 Project in Mali and the Dugbe 1 Project in Liberia. Its current focus is on bringing Yanfolila, which has a 1.8Moz gold inventory, to production in H1 2016. The high grade gold project has the potential to turn a profit in a varying gold price environment and will allow for quick returns with low operating costs.
The 4.2Moz Dugbe 1 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 5,000km2 highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets.
For more information, please visit www.hummingbirdresources.co.uk