Birmingham gold mine firm concludes $2m acquisition
Birmingham-registered gold exploration company, Hummingbird Resources, has increased its stake in its African gold mine operation.
The AIM-listed business has acquired an additional 5% interest and a 1% royalty in the Yanfolila Gold Project in Mali in a transaction worth $2m.
The acquisition increases its stake in the project to 80% ahead of its first gold pour, which is targeted for the end of 2017.
The deal sees Hummingbird take up its option with La Petite Mine d’Or (LPMDO) to acquire its 5% interest in the project for the $1m.
In addition, the company has negotiated the acquisition of the 1% royalty LPMDO had over the project for a further $1m.
The $2m will be paid in shares by March 31 next year.
Dan Betts, CEO of Hummingbird, said: “Finalising a previously agreed acquisition of the LPMDO minority interest is another exciting step forward as we close in on our first gold pour from Yanfolila.
“Additionally, by reducing the royalties over the project we have further increased the benefit to Hummingbird as we firmly believe the mine life will increase significantly as we convert further Resources into Reserves once we are in production.
“We continue to make excellent progress on site and as a result we continue to advance Yanfolila to production both on time and on budget.”
When Hummingbird acquired the project, the Government of Mali had a 10% free carried interest and LPMDO had a 5% interest in the project. The GoM also had the right to acquire an additional 10% interest in the project that it exercised in February 2017 for $11m taking its stake to 20%.
As a result of this latest acquisition the total royalty over the project has been reduced to the 3% due to the GoM.
