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Hummingbird enters earn-in agreement with ARX Resources

09:21, 4th June 2020
Francesca Morgan
RNS Newswire
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Hummingbird Resources (AIM:HUM) FOLLOW has entered into a conditional earn-in agreement with ARX Resources in respect of the company's Dugbe Gold Project in Liberia.  
 
The two year earn-in period will require ARX to complete a Definitive Feasibility Study, carry out a significant exploration programme while funding all its project costs over the period. 
 
The earn-in entitles ARX to earn up to a 49% interest in the project, and is subject to conditions including its payment to Hummingbird of a non-refundable deposit of US$2m.  
 
In addition, the company said it has secured the right to acquire an exploration licence which is surrounded on all sides by the company's existing Mineral Development Agreement. 
 
The two groups will undertake a mutually agreed exploration programme of around US$10m with the main objective of materially increasing the known resource base of the project. 
 
"Whilst we continue to believe completely in the potential of the Dugbe Gold Project we also realise that it is a very different project to what we are focused on at Yanfolila,” said Dan Betts,  CEO of Hummingbird. 
 
Shares in Hummingbird Resources were trading 2.65% lower at 27.5p on Thursday. 

HUM price chartBetts said the project needs a large investment to unlock value and to further showcase its potential which was shown in the first 164 holes drilled which all intersected mineralisation. 
 
“We are delighted that ARX has committed to invest significantly in the project to help us to finally start to unlock the value at Dugbe, while keeping the project under our control,” he added. 
 
In addition, on ARX commencing the 2 year earn-in period as operator, it is intended that Mr Daniel Betts and Mr Ernest Nutter will join the board of ARX as non-executive directors. 
 
Meanwhile, Hummingbird said it has secured an opportunity to acquire the Central Licence from MES Mining Corporation, a company incorporated in Liberia. 
 
This will include a payment within four weeks of an option fee of US$0.6 million to secure a three month extendable exclusivity period for technical due diligence on the Central Licence. 
 
ARX will also have the right to direct Hummingbird to acquire the Central Licence by meeting the costs of exercise and subsequent overhead and operating costs associated. 
 
The group said the Central Licence would then be included within the project which ARX are earning into should this be achieved. 
 
“This licence has always been of potentially significant importance in our goal to fully explore the mineralisation of the region and we are excited to see how this may enhance the Project,” said Betts. 
 
“In this current gold market the project is well placed to be advanced rapidly,”
added Ian Stalker of ARX. 
 
Follow News & Updates from Hummingbird Resources here: FOLLOW

 

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