Hummingbird Resources plc has been granted mining licences for the Kouroussa gold project in Guinea.
MULTI-ASSET
The licences have a 15-year renewable term with construction of the mine to start within a year.
The company will pay an initial £10 million to Cassidy Gold Corp by issuing 35,248,441 new ordinary shares in Hummingbird, at 28.4 pence per ordinary share.
Hummingbird will pay 5% royalty to the Guinean government, 1% contribution to the local development fund and 30% tax on profits.
Chief executive Dan Betts said that Kouroussa would see Hummingbird transform from a single asset to a multi-asset producing gold company in multi-jurisdictions.
“I would like to thank the Government of Guinea and the people of Kouroussa.
“We look forward to working with them, and all our stakeholders, in developing and running a world class gold mine that embodies industry leading environmental, social and governance standards that the country, local people and the company can be proud of.”