Hummingbird Resources (HUM ) said Pasofino Gold Limited, the Canadian-based mineral exploration company which is developing the Dugbe Gold Project in Liberia, of which Hummingbird holds a controlling interest, has raised gross proceeds of US$5.5 million.

The gold ore mining company told investors that Pasofino has entered a non-brokered private placement of its common shares for gross proceeds of up to $5.5m, of which approximately US$4.5 million has been subscribed for by ESAN, a leading Turkish mining company.

The funding will provide sufficient capital for Pasofino to complete the Feasibility Study ("FS") on the Dugbe Gold Project ("Dugbe") in Liberia, which is on track to be delivered in 2Q22. 

Today’s fundraise follows a recently announced updated Mineral Resource Estimate ("MRE") at the Dugbe project, which was undertaken by Pasofino last month and which confirmed NI 43-101 compliant Measured and Indicated gold resources of 3.4 million ounces of gold.

The Canadian-based mineral exploration firm, Pasofino, released the update for the Dugbe F and Tuzon deposits at the project on 22 November 2021. Pasofino has an earn-in agreement for a 49% stake in the project, with Hummingbird maintaining a controlling interest of 51%. 

At the time, Hummingbird stated that the updated Mineral Resource Estimates (“MRE”) at Dugbe had proven that the gold project was underpinned by “a robust mineral deposit.”

The company informed investors that by using a 1.0 g/t of gold (Au) cut-off, the measured and indicated part of the MRE model had boasted 2.88 million ounces (“Moz”) of gold contained in 56.6 million tonnes (“Mt”) grading 1.58 grams per tonne (“g/t”) of gold in two deposits.

Pasofino said there are “clear opportunities” to expand the MRE beyond the pit-shell, increase grade and make new discoveries highlighted by recent outcrop sampling returning up to 3 g/t on strike from Tuzon and the 100+ targets on the over 2,500 km2 land package in Liberia.

Using the latest upgrade, DRA Global is now progressing with the mine design and Mineral Reserve Estimation for the Feasibility Study (“FS”), which remains on schedule for completion by the end of 2Q22. It is expected to benefit from the robust and flexible MR, Pasofino noted.

Dan Betts, CEO of Hummingbird Resources said the raise will enable Pasofino to complete the DFS work on Dugbe and to finish their earn in conditions as per the JV agreement. 

Commenting on the updated MRE, Betts said Hummingbird is “particularly encouraged by the material uplift in the Measured and Indicated Resources recently announced by Pasofino, which should pave the way for a robust DFS showcasing solid project economics.”
Speaking of the investment made by the Turkish mining group ESAN, Betts said the business is expected to add “significant value” to the Dugbe gold project as it “gathers momentum.”

In October 2021, Hummingbird told investors that it had seen operational improvements in 3Q21, in particular the signing of a $100m group financing facility from Coris Bank in October.

Over the period, the Company has focused on the development of its recently acquired Kouroussa Gold Mine in Guinea which is forecast to be a high-grade, low-cost mine.

The mine is expected to produce an average of between 120,000 and 140,000 ounces (“oz”) for the first three years of production and average 100,000 oz over the life of mine (“LOM”).

The mine is forecasted to be “a key contributor” in Guinea’s journey to becoming a leading gold producer in West Africa, following ongoing gold discoveries in the Siguiri Basin while at today’s gold price, the Company said the project also demonstrates ‘robust economics’.

The Company informed investors that the construction of the Kouroussa mine is now scheduled to start this quarter, with first gold pour scheduled for the end of Q2 2023.

At the Dugbe gold project, the Group’s earn-in partner, Pasofino Gold, released several drilling results during the quarter on the key Tuzon and Dugbe F deposits. Hummingbird said the results continue to highlight the significant gold endowment scale of the Dugbe project.

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