Hummingbird Resources Ratifies Mineral Development Agreement with Government of Liberia
MONROVIA – Hummingbird Resources plc (Hummingbird or the Company) (AIM: HUM), has updated its 25-year Mineral Development Agreement (MDA) with the Government of Liberia (GoL) over a land package of approximately 2,000km2, which includes the Company’s 4.2Moz Dugbe Gold Project (Dugbe).
The MDA has now been signed with the Government of Libera, attested to by the Minister of Justice, ratified by the National Legislature of the Republic of Liberia, approved into law by the President of the Republic of Liberia and published in handbills signifying the completion of all necessary steps for the MDA to become immediately effective. This will provide the necessary long-term stability and framework for the next steps at Dugbe. The Dugbe MDA is the first gold MDA to be negotiated with the Government of Liberia following a discovery in over 10 years and represents a huge milestone for both the Government and the Company.
The updates include a 25-year renewable MDA signed with the Government of Liberia; provides necessary long-term framework for further exploration, feasibility studies, mine development, production and ultimately mine closure; initial three-year exploration term, with ability to extend MDA into additional areas with geological continuity; flexibility to develop more than one mine and continue exploration on a regional scale.
The agreement comes with stabilization of taxes and duties for 15 years (the maximum permitted under Liberian law). The Government of Liberia would be granted a 10% free carried shareholding in the project (HUM’s post interest: 90%), royalty of 3% and income tax of 25% plus a signature bonus of US$1.5 million payable to the Government. Community development funds to be established in partnership with GoL and the communities.
Dan Betts, CEO of Hummingbird Resources described the completion of the MDA as an important milestone for Hummingbird and Liberia.
“Hummingbird, with this agreement in place, can now look towards taking the next steps at Dugbe in the best interests of all stakeholders,” he said.
The Dugbe Gold Project was Hummingbird’s first asset and the original permit that was granted to Hummingbird sits within this MDA area.
“I am proud to say that we developed the largest gold asset in Liberia from grass roots exploration and, while our recent focus has been in Mali, the significance and scale of this asset is not to be underestimated. We look forward to updating the market further as we develop our plans,” he said.
Molewuleh B. Gray, Chairman of the National Investment Commission of Liberia said the Liberian government is committed to resuscitate the mining sector. He added that President George Weah is committed to supporting reforms that demonstrate to the world that Liberia is open for business.