03 Feb Hummingbird to receive $11 million investment from Mali Government
Hummingbird Resources (AIM: HUM) has announced it will receive around US$11 million from the government of Mali, for an additional 10% stake in the Yanfolila gold project.
The agreement allows the government to take an overall 20% interest stake in the gold operation, as it already held a ‘non-dilutable’ free carried interest stake also worth 10%.
Dan Betts, CEO of Hummingbird said: “I am delighted to see that the Government has exercised its option to increase its interest in the Project.
“I believe this is a clear signal of the government’s appreciation of the enormous value accretion potential of Yanfolila in the long term.”
Construction on the mine began last autumn, with first gold expected to be poured by the end of 2017.
The Yanfolila mine, located in south west Mali near the Guinea border, is set to produce 132,000 ounces of gold in the first 12 months and remains one of the best projects held by an AIM-listed mining company.
Hummingbird also has gold exploration projects in Ghana and Liberia, with the Dugbe project in the latter country representing Liberia’s largest gold deposit.