REG - Hummingbird Res. - Restart of Corica Operations at Kouroussa

Hummingbird ResourcesAnnouncement

17/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240517:nRSQ8809Oa&default-theme=true

RNS Number : 8809O  Hummingbird Resources PLC  17 May 2024

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

 

17 May 2024

Hummingbird Resources plc

("Hummingbird", the "Group", or the "Company")

Restart of Corica Operations at Kouroussa and Corporate Update

Hummingbird (AIM: HUM) is pleased to announce the remobilisation of Corica
Mining Services ("Corica") at the Kouroussa Gold Mine in Guinea ("Kouroussa")
following the suspension of work by Corica on 17 March 2024.

The Company also notes that, as part of ongoing efforts to mitigate risk
around its working capital position as a result of the recent interruptions,
CIG SA ("CIG"), the Company's largest shareholder, has agreed to provide a
US$10 million loan to the Company in order to ensure continuity of operations
during this re-ramping up phase of mining operations.

Restart of Corica Operations at Kouroussa

Hummingbird and Corica (the "Parties") have agreed to remobilise Corica
equipment to site and continue the ramp-up in operations towards commercial
production at Kouroussa.

Key highlights include:

·      All Corica equipment has been mobilised and arrived at site, with
operations having already commenced.

·      An agreed operational plan is being implemented by Corica and is
anticipated to fully ramp up by the beginning of Q3-2024. The plan will be
augmented by the previously announced additional ETASI fleet, which is
currently being mobilised, and is expected at site over the coming weeks.

·      The agreement between the Parties to remobilise outlines a
framework for negotiating and resolving key disputes, including the parties'
respective claims under the terms of the mining contract.

Corporate Update

To facilitate a smooth transition back to full operations by Corica, CIG has
agreed to provide the Company with a short-term loan of US$10 million (the
"CIG Loan"). The CIG Loan will be provided in tranches, is unsecured, attracts
interest at a rate of 14% per annum and has a maturity date of 30 September
2024, which can be extended by mutual agreement.

The Company remains in discussions with its primary lender, Coris Bank
International ("Coris"), surrounding the mitigation of the financial impacts
of the suspension in operation and will provide an update in due course.

Dan Betts, CEO of Hummingbird, commented:

"The agreement to remobilise Corica at Kouroussa demonstrates a commitment
from both parties in finding a practical solution to the ongoing disputes. I
am hopeful that this provides the framework for constructive discussions to
resolve and re-base our relationship with Corica.

Our ongoing discussions with Coris, together with CIG's support, provide us
with a platform to enable a smooth transition back to full operations at
Kouroussa. Corica's return to work will allow Hummingbird to increase the
mining of the higher-grade material and accelerate our plans to reach our 200
Koz per annum production profile over the coming months. The momentum this
brings reiterates our confidence in the strong future ahead for the Kouroussa
project.

Clearly this has been a time of stress for the Company, and I would like to
thank everybody involved both within Hummingbird and the many stakeholders and
suppliers and partners who have been so patient, resilient and diligent in
working through this situation."

Related Party Transaction

CIG is classified as a Substantial Shareholder of the Company pursuant to the
AIM Rules for Companies (the "AIM Rules"). The Company entering the agreement
governing the CIG Loan is accordingly classified as a related party
transaction pursuant to the AIM Rules. In this regard, the directors of the
Company confirm, having consulted with the Company's nominated
adviser, Strand Hanson Limited, that they consider that the terms of
the agreement governing the CIG Loan to be fair and reasonable insofar as its
shareholders are concerned.

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing Company, member of the World Gold
Council and founding member of Single Mine Origin (www.singlemineorigin.com
(http://www.singlemineorigin.com/) ). The Company currently has two core gold
projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa
Gold Mine in Guinea, which will more than double current gold production
once at commercial production. Further, the Company has a controlling interest
in the Dugbe Gold Project in Liberia that is being developed by joint
venture partners, Pasofino Gold Limited. The final feasibility results on
Dugbe showcase 2.76 Moz in Reserves and strong economics such as a 3.5-year
capex payback period once in production, and a 14-year life of mine at a low
AISC profile. Our vision is to continue to grow our asset base, producing
profitable ounces, while central to all we do being our Environmental, Social
& Governance ("ESG") policies and practices.

 

For further information, please visit hummingbirdresources.co.uk
(https://www.hummingbirdresources.co.uk/)  or contact:

 

 

 Daniel Betts, CEO       Hummingbird Resources plc  Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Edward Montgomery, CD
 James Spinney           Strand Hanson Limited      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer          Nominated Adviser
 James Asensio           Canaccord Genuity Limited  Tel: +44 (0) 20 7523 8000

 Ana Ercegovic           Broker
 Bobby Morse             Buchanan                   Tel:  +44 (0) 20 7466 5000

 Oonagh Reidy            Financial PR/IR            Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 George Pope

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGPUGCAUPCUAM