Hummingbird to explore for iron ore in Liberia
BIRMINGHAM-based minerals exploration firm Hummingbird Resources has entered into a new agreement to allow it to explore for iron ore in northern Liberia.
The newly-floated company , together with its wholly owned subsidiary Iron Bird Resources, has secured a deal with Petmin Ltd. Under the agreement, Petmin will provide up to a $2m to help fund the search of the Mount Ginka area to ascertain the commercial viability of an extraction operation.
In return, Iron Bird will issue new shares equivalent to 15% of its issued share capital to Petmin for a first phase investment of $0.5m. The move is conditional on the transfer of the Mount Ginka licence to Iron Bird.
On successful completion of phase one of the exploration, Petmin will invest a further $1.5m in Iron Bird, to increase its shareholding to 50%. This second phase investment will be used to demonstrate the scale of the resources within the licence area.
The exploration programme is expected to begin with grab sampling, trenching, pitting and drilling with the aim of obtaining a suitable sample of ore to test for metallurgical content.
Dan Betts, chief executive of Hummingbird, said: “We are delighted to have finalised the terms of this agreement and look forward to working with a team we know well to progress the Mount Ginka project.
“This deal allows us to understand the commercial viability of the project at no cash cost to our shareholders, and we look forward to the results of the contracted aeromagnetic survey.”
Hummingbird has been exploring for minerals in Liberia since its establishment in November 2005 and is currently the holder of the largest area of mineral exploration ground in the geological region of Eastern Liberia, with licences prospective for iron ore, other minerals and gold – which is its focus at present.
The company was co-founded by Dan Betts, son of Stephen Betts, chairman of Betts Metals and who is also a non-executive director of Hummingbird, a Midlands family that has been smelting, refining and dealing in precious metals in Birmingham’s Jewellery Quarter for 250 years and seven generations.
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