Hummingbird To Acquire Kouroussa Gold Project in Guinea

SEATTLE (Scrap Monster): Hummingbird Resources plc signed an agreement to acquire Kouroussa Gold Project located in Guinea, West Africa, from Cassidy Gold Corp. The deal is subject to approval by government authorities. The acquisition is in line with the company’s strategy to focus on high margin projects.

The project has been acquired for an initial consideration of £10-million. On gold sales by or on behalf of the company in excess of the initial 200, 000 oz of its production and sales up to a maximum of 2.2-million ounces of production and sales, Cassidy will receive 2% net smelter royalty.

The first gold production is expected within two years. The production over the initial five-year life –of-mine is estimated at around 100,000 oz per annum. The capital development cost, including plant construction, mine development and associated infrastructure is estimated at approximately $90 million.

Dan Betts, CEO of Hummingbird noted that the intended acquisition of Cassidy Guinea and the Kouroussa Gold Project marks a transformational step in its development. Furthermore, it will boost the company’s efforts to become a multi-asset gold producer in the near term. The company’s West African banking partner, Coris, has offered to support the financing of the project, he added.

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