Hummingbird Resources (LON:HUM) told investors this morning that it has completed its acquisition of the Kouroussa Gold Project in Guinea from Cassidy Gold Corp ("Cassidy").
The African gold producer, developer and explorer is now awaiting to be awarded the mining licence for the project from the Government of Guinea. The project is a near term development asset in the prolific Siguiri Basin, situated in the eastern Republic of Guinea.
Kouroussa has a high-grade mineral resource of 1.18Moz of gold at over three grams per tonne, a lucrative pre-tax NPV10 of $110m and an IRR of 51.2% (at $1,350/oz gold price).
Once the company has been awarded the mining licence for the project, Hummingbird will then pay the initial consideration of £10m, which will be satisfied through the issue of 35,248,441 new ordinary shares at a price of 28.4p, 9% of the enlarged share capital.
Shares in Hummingbird Resources have increased from lows of 25p in June and were trading 2.08% higher at 36.75p during Tuesday morning trading.
He added, “Our dedicated project management team have started development plans and the permitting process as we highlighted in our recent 1H2020 interim results.
The completion of the acquisition gives us further confidence to advance with these initiatives to bring Kouroussa into production and transform Hummingbird into a multi-asset producing resources company."
Hummingbird said the synergies between Kouroussa and its existing producing Yanfolila Mine will enable it ‘to use similar metallurgical flowsheet and process plant design to leverage construction and operational expertise.’
The group said this will mean fast tracking the mine into production to produce around 100,000oz per annum at an AISC of around US$800 over an initial five-year Life of Mine.
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