Hummingbird Resources secures C$10m funding for the Dugbe Project
(AIM: HUM ) noted that Pasofino Gold Ltd (“Pasifino”) has completed its acquisition of ARX Resources Ltd (“ARX”) and raised CS10m to fund the development of the Dugbe Gold Project in Liberia.
Pasofino is a Canadian-based mineral exploration company and through its acquisition of ARX, has an option to earn a 49% economic interest in the Dugbe Gold Project in Liberia.
Pasofino will earn its 49% stake of the project after meeting certain criterions over a two year earn-in period including completing a mutually agreed exploration programme as well as completing a definitive feasibility study under joint management committee oversight.
In addition, Hummingbird informed investors that Pasofino will cover all overheads and operating costs associated with the Dugbe gold project throughout the earn-in period from the proceeds of a completed a C$10m equity financing.
With the financing, the group expects development at Dugbe to accelerate ‘from here on.’
Shares in Hummingbird Resources have increased over the past 12 months from lows of 19.7p in April to open at 38.5p following this announcement.
Commenting on the closing of the financing, Dan Betts, CEO of Hummingbird, said: "We note the closing of the Pasofino financing and are excited to see work commencing on the Dugbe Project now that qualifying conditions to commence the earn in have been met.”
He added, “The Dugbe Project already has a significant mineral endowment which Hummingbird discovered from first principles and we are very excited to support Pasofino in its work to both prove the robust economics of the Project and to showcase what we believe to be a world class gold province which is still in the embryonic stages of discovery."
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