Aim-listed Hummingbird Resources has been granted the mining licences needed for its Kouroussa gold project, in Guinea.
The licences have a 15-year, renewable term. Mine construction must start within one year.
A 5% royalty is payable to the federal government of Guinea, as is a 1% contribution to a local development fund and a 30% tax on profits.
The grant triggers the requirement to pay an initial consideration of £10-million to Cassidy Gold, which will be satisfied through the issue of shares in Hummingbird.
The government has the right to a 15% nondilutable free-carried interest in the share capital of Kouroussa Gold Mine – the wholly owned subsidiary of Hummingbird which owns the project – as well as the right to acquire a further 20% participating interest for cash.
“This project is part of the reinforcement of the industrial production of gold in Guinea and will have a significant economic impact in Kouroussa and in the country, while contributing to the resilience of the mining sector.
“We look forward to an ongoing strong relationship with the company and supporting the development and running of the operation going forward for the success of all stakeholders,” says Guinea Minister of Mines Abdoulaye Magassouba.
“I am delighted to confirm that we have been granted the mining licences by the Guinea government for our Kouroussa gold project.
“This marks an important step for the company as we move from being a single asset producing gold company, towards being a multi-asset producing gold company in multi-jurisdictions,” acclaims Hummingbird CEO Dan Betts.