Hummingbird Resources plc said that its joint venture partner will exercise its right to take 100% ownership of the 2,559 km2 Dugbe gold project in southern Liberia.
TERMS
The project lies within the southwestern corner of the Birimian Supergroup which hosts most West African gold deposits.
Hummingbird identified two deposits of Dugbe F and Tuzon located within 4km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralisation in the area.
Pasofino Gold Ltd will convert Hummingbird’s 51% interest in Dugbe to a 51% interest in Pasofino.
The Canadian partner will have complete ownership, prior to 10% carried interest of the Government of Liberia.
Pasofino will issue common shares to Hummingbird resulting in the latter owning 51% of the outstanding common shares of Pasofino.
STRUCTURE
“With this consolidation, Hummingbird moves to owning 51% of Pasofino which simplifies the ownership structure and ensures that what is one of the largest gold projects in West Africa has clear visibility of its own,” said chief executive Dan Betts.
“With 2.8m oz of gold reserves, unrivalled exploration potential and a recently completed feasibility study, this project has some of the most attractive economics of any development project in the region and it is the objective to now maximise value for all stakeholders.”