Aim-listed Hummingbird Resources has signed a conditional binding sale and purchase agreement (SPA), confirming and setting out the key terms for the acquisition of the Kouroussa gold project, in Guinea, from Cassidy Gold.
This follows the completion of a confirmatory due diligence on the project.
Moreover, Hummingbird has also completed a more in-depth review of the project’s geological database which highlights promising drill intersections both within and outside the current stated mineral resource used in the mine plan.
These drill intersections also demonstrate the high grade nature of the targets proximal to the project and within the permit area, Hummingbird says.
The company notes a small number of notable drill intersections with greater than 100 gram metre intervals, which it says re-confirms its belief in the “exciting exploration potential” to extend the resources at Kouroussa beyond the known 1.1-million ounces.
All deposits remain open and further exploration work is required to enable Hummingbird to fully evaluate the potential of the project.
An initial consideration of £10-million for the SPA has been satisfied through the issue of new Hummingbird shares, representing 9% of the enlarged share capital of the company.
“I am delighted we have been able to confirm the purchase of the Kouroussa gold project and look forward to working with the government of Guinea as we progress the development of the project as quickly as possible whilst continuing to explore the remarkable geological potential at the project.
"This marks a pivotable point in Hummingbird’s story and is a significant next step in achieving our long-term ambition to create a sustainable multi-asset gold producer,” says Hummingbird CEO Dan Betts.