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).
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 or
contact:
Daniel Betts,
CEO
Thomas Hill,
FD
Edward Montgomery,
CD
|
Hummingbird Resources
plc
|
Tel: +44 (0) 20 7409
6660
|
James
Spinney
Ritchie
Balmer
|
Strand Hanson
Limited
Nominated
Adviser
|
Tel: +44
(0) 20 7409 3494
|
James
Asensio
Ana
Ercegovic
|
Canaccord Genuity
Limited
Broker
|
Tel: +44 (0) 20 7523
8000
|
Bobby Morse
Oonagh
Reidy
George Pope
|
Buchanan
Financial
PR/IR
|
Tel: +44 (0) 20
7466 5000
Email: HUM@buchanan.uk.com
|