29th Jun 2016 10:04
LONDON (Alliance News) - West Africa-focused gold miner Hummingbird Resources PLC on Wednesday said it has signed a memorandum of understanding with Kola Gold Ltd with a view to the pair amalgamating certain gold permits.
The agreement focuses on the pair combining non-core gold assets held by Hummingbird in Mali with a number of Kola permits in Mali and Senegal under a new company, Cora Gold Inc. Cora would be 57% held by Kola, 43% by Hummingbird.
The portfolio for Cora, which the pair are in the process of establishing, will hold 10 prospective gold exploration properties located in the Kenieba Window in Mali and Senegal and the Yanfolila Gold Belt in Mali.
The amalgamation of the assets is conditional on Cora raising at least USD4.0 million from third parties, due diligence, and final documentation being completed by the end of September.
"This transaction doubles our exploration exposure in Mali and provides us with an introduction to Senegal and exciting new mineralised ground in Mali where we are currently focused on bringing Yanfolila, one of Africa's highest margin undeveloped gold projects, to production next year," said Hummingbird Managing Director Dan Betts.
"The potential upside for Hummingbird is significant, but importantly it allows us to develop exploration potential for the company whilst allowing us to remain absolutely focused on the development of the Yanfolila gold mine," he added.
Hummingbird shares were up 1.4% to 22.56 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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