Further to the company’s announcement on 8 June 2020, Hummingbird Resources plc (AIM:HUM), has announced the signing of a conditional binding sale and purchase agreement (SPA) confirming and setting out the key terms for the acquisition of the Kouroussa Gold Project located in Guinea, from Cassidy Gold Corp, following the completion of confirmatory due diligence by the company on the project.
The company has also completed a more in-depth review of the project’s geological database which highlights promising drill intersections both within and outside the current stated mineral resource used in the mine plan. These drill intersections also demonstrate the high grade nature of the targets proximal to the project and within the permit area.
Key terms of the SPA agreement
- Initial consideration of £10-million satisfied through the issue of 35,248,441 Hummingbird new Ordinary Shares at 28.4p (“Initial Consideration”), currently representing 9,0% of the then enlarged share capital of the company:
- Equivalent to approximately US$10 per resource ounce
- All significant beneficial owners of Cassidy subject to 12 month lock in and 12 month orderly market provisions
- Deferred consideration of £10 for every ounce of gold reserve published (or processed if not included in a reserve) in excess of 400,000 ounces (subject to a maximum of 1-million ounces, or £6-million)
- Additionally, Cassidy shall retain a 2% net smelter royalty on all gold sales by or on behalf of the Ccmpany over and above the first 200 000 ounces of its production and sales, subject to a maximum of 2,2-million ounces of production and sales
Dan Betts, CEO of Hummingbird, comments: “I am delighted we have been able to confirm the purchase of the Kouroussa Gold Project and look forward to working with the Government of Guinea as we progress the development of the project as quickly as possible whilst continuing to explore the remarkable geological potential at the project.
“This marks a pivotable point in Hummingbird’s story and is a significant next step in achieving our long term ambition to create a sustainable multi-asset gold producer. I would like to take this opportunity to thank all stakeholders who have contributed to getting us this far and continue to support us at this exciting time for the company.”
Murray Paterson, VP Geology of Hummingbird, comments: “Having the opportunity to work on a new gold system at Kouroussa is extremely exciting. There is undoubtedly further potential to be discovered but what is most exciting is the abundance of high grades as evidenced by the large number of gram metre intercepts >50 gram metres but also the many occurrences of visual gold. The old adage ‘Grade is King’ is particularly relevant to Kouroussa and our technical team is looking forward to the challenge of unlocking the system’s full economic potential. We look forward to sharing the story as it unfolds.”