Hummingbird Resources plc (LSE:HUM) announced that along with its subsidiaries, it has entered into a $15-million financing agreement with a 100-percent-owned subsidiary of Anglo Pacific Group plc (LSE:APF). The money will be put towards exploration and development at Hummingbird’s Liberia-based Dugbe 1 gold project.
According to the press release, highlights of the transaction include:
- Anglo Pacific to advance US$15 million in three equal tranches in return for 2% net smelter return royalty
- Agreement relates only to products mined within a 20km radius of the Group’s Dugbe F Resource
- Proceeds to be used to fund the Group’s 2013 work programme
This agreement marks the conclusion of detailed due diligence by Anglo Pacific into our project and I am delighted that this agreement cements our common goal of building a gold mine. The IFC and Anglo Pacific agreements are key milestones for Hummingbird and a clear technical endorsement of the project. The funds received from the IFC, together with the proceeds from Anglo Pacific, will fund us through 2013 and today’s announcement reflects the quality and deliverability of the project.