REG - Hummingbird Res. - Signing of Mali Protocol

Hummingbird ResourcesAnnouncement

15/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250115:nRSO3372Ta&default-theme=true

RNS Number : 3372T  Hummingbird Resources PLC  15 January 2025

 

 

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

15 January 2025

Hummingbird Resources PLC

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

Signing of Mali Protocol

Hummingbird (AIM: HUM) is pleased to announce that its subsidiary, Société
des Mines de Komana SA ("SMK"), has reached agreement with the Government of
Mali (the "Government") regarding application of the 2023 Mining Code to the
Company's Yanfolila Gold Mine ("Yanfolila") (the "Agreement").

During the last 12 months, Hummingbird and SMK, have engaged in productive
discussions with a commission comprised of Government advisors and
representatives to address outstanding audit findings and clarify the
application of the 2023 Mining Code to Yanfolila. The Agreement represents a
comprehensive framework addressing historical matters and establishing clear
operational parameters for the future operation and development of Yanfolila.
Key terms include Yanfolila's migration to Mali's 2023 Mining Code with the
Mali State (the "State") granting a 2% reduction on the Special Tax on Certain
Products rate ("ISCP") for the duration of the new establishment agreement.

The Agreement includes a settlement payment totalling FCFA 10 billion
(approximately US$16.4 million), payable in two equal instalments of FCFA 5
billion each, with the first payment due within five working days of signing
and the second payment by 30 June 2025. Additionally, the Company has agreed
to waive historical VAT credit claims in the sum of FCFA 10 billion,
collectively settling all tax and customs matters prior to 31 December 2023.

Under the Agreement, the Company commits to providing a comprehensive
operating plan, addressing capital investments required to maximise current
production and extend Yanfolila's mine life. As part of this, the Company and
SMK intend to restructure its existing debts to ensure operational stability.

The State has confirmed its commitment to renew key exploration permits,
alongside approving an extension to the Komana Mining Permit perimeter,
supporting the Company's broader strategy in Mali. Additionally, as has been
previously announced, the Government of Mali has exercised its option to
increase its ownership in SMK to 20%, with immediate effect, from the 10% the
State currently holds.

Hummingbird is in advanced discussions with CIG SA to secure additional
funding to meet the Company's financial obligations for the first payment to
the Government pursuant to the Agreement. Further updates will be provided in
due course.

Geoff Eyre, Interim CEO of Hummingbird, commented:

"This agreement represents a significant milestone in our relationship with
the Government of Mali and provides a stable framework for our continued
operation and development of the Yanfolila Gold Mine. Through constructive
dialogue with the Government, we have addressed historical matters while
securing important operational agreements that support our long-term
investment in the country. The renewal of exploration permits and extension of
our mining permit perimeter demonstrates Mali's commitment to our
partnership."

**ENDS**

This announcement contains inside information as stipulated under the Market
Abuse Regulation No. 596/2014 (incorporated into UK law by virtue of the
European Union (Withdrawal) Act 2018 as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019). Upon the publication of this
announcement via a regulatory information service, this inside information is
now considered to be in the public domain.

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). The
Company currently has two core gold projects, the operational Yanfolila Gold
Mine in Mali, and the Kouroussa Gold Mine in Guinea. Furthermore, 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 2.76Moz 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 or contact:

 Geoff Eyre, CEO         Hummingbird Resources plc                                        Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Edward Montgomery, CD
 Callum Stewart          Stifel Nicolaus Europe                                           Tel: +44 (0) 20 7710 7600

 Varun Talwar            Joint Financial Adviser to Hummingbird
 James Spinney           Strand Hanson Limited                                            Tel: +44 (0) 20 7409 3494

 James Dance             Joint Financial Adviser & Nominated Adviser to Hummingbird

 Ritchie Balmer

 David Asquith
 Bobby Morse             Buchanan                                                         Tel: +44 (0) 20 7466 5000

 Oonagh Reidy            PR Adviser to Hummingbird                                        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  MSCBIMTTMTMBTLA