Hummingbird Resources has secured mining licences from the Government of Guinea for the Kouroussa Gold Project.

The licences include a 15-year, renewable licence term; a 5% royalty payable to the federal government; a 1% contribution to a local development fund; and a 30% tax on profits.

The firm should commence mine construction work within a year.

Hummingbird formally assumed ownership of the Kouroussa project from Cassidy Gold in September 2020.

The grant prompts the need for the firm to pay £10m in initial consideration to Cassidy Gold, raised through the issue of more than 35.2 million shares in Hummingbird at 28.4p a piece.

Guinea Minister of Mines Abdoulaye Magassouba said: “This project is part of the reinforcement of the industrial production of gold in Guinea and will have a significant economic impact in Kouroussa and in the country while contributing to the resilience of the mining sector.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Mining Technology.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We look forward to an ongoing strong relationship with the company and supporting the development and running of the operation going forward for the success of all stakeholders.”

Hummingbird Resources CEO Dan Betts said that the grant from the federal government marks an important step for the company as it moves towards being a multi-asset producing gold company in multi-jurisdictions.

The Kouroussa Gold Project is a high grade, open-pit development asset. It has underground potential.

With 100,000oz of annual gold production capacity, the project is expected to increase the company’s production profile to more than 200,000oz.

According to estimates, the project has a high-grade indicated and inferred mineral resource of 1.18 million ounces (Moz) of gold at >3g/t with material exploration upside potential.