REG - Hummingbird Res. - Increases Stake in Yanfolila Ahead of Production <Origin Href="QuoteRef">HUMR.L</Origin>

Hummingbird ResourcesAnnouncement

13/06/2017 07:00

RNS Number : 8645H
Hummingbird Resources PLC
13 June 2017
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining
13 June 2017
Hummingbird Resources plc ("Hummingbird" or "the Company") 
Increases Stake in Yanfolila Gold Project to 80% Ahead of Production by Year-End 
Hummingbird Resources (AIM: HUM) is pleased to announce it has acquired an additional 5% interest and a 1% royalty in the Yanfolila Gold Project in Mali ("Yanfolila" or "the Project") for US$2 million, increasing its stake to 80% ahead of its first gold pour from Yanfolila targeted by the end of 2017. 
Highlights:
 Hummingbird has agreed to take up its option with La Petite Mine d'Or ("LPMDO") to acquire its 5% interest in the Project for the US$1 million
 In addition the Company negotiated the acquisition of the 1% royalty LPMDO had over the Project for a further US$1 million
 The Company now has an 80% interest in the Project (previously 75%)
 3% royalty to the Government of Mali ("GoM") over the Project remains
 US$2 million to be paid in shares on 31 March 2018
Dan Betts, CEO of Hummingbird, commented:
"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." 
Further information:
When the Company acquired the Project the GoM 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 US$11 million taking its stake to 20%. As a result of this acquisition the total royalty over the Project has been reduced to the 3% due to the GoM. 
The consideration of US$2m due to LPMDO will be satisfied though the issue of 6,197,353 ordinary 1p shares in Hummingbird which are expected to be issued on 31 March 2018. 
**ENDS**
For further information, please visit www.hummingbirdresources.co.uk or contact:
Daniel Betts
Thomas Hill 
Robert Monro
Hummingbird Resources plc
Tel: +44 (0) 20 3416 3560
James Spinney
Ritchie Balmer
James Bellman
Strand Hanson Limited
Nominated & Financial Adviser 
Tel: +44 (0) 20 7409 3494 
Jon Belliss
Beaufort Securities Limited
Broker
Tel: +44 (0) 20 7382 8300
Lottie Brocklehurst
Susie Geliher
St Brides Partners Ltd
Financial PR/IR
Tel: +44 (0) 20 7236 1177
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
About Hummingbird Resources Plc
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 Gold Project in Mali and the Dugbe Gold Project in Liberia. It is currently building Yanfolila targeting first production by the end of 2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total Resources of 1.8Moz of gold and an additional 390,700oz of non-compliant exploration potential. The high-grade gold project has low operating costs of US$695/oz AISC with 132,000oz of first full year's production. 
The 4.2Moz Dugbe Gold 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 4,000km2 highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets. 

This information is provided by RNS
The company news service from the London Stock Exchange
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