Hummingbird Resources (HUM.L), a multi-project gold company, announced Tuesday that it has agreed to sell its wholly owned subsidiary Ensign Resources Limited to Taoudeni Resources Limited, a private West African exploration business.
For the deal, Hummingbird would receive 10% equity interest in Taoudeni Resources and a US$1/oz discovery bonus.
Hummingbird retain the right to buy back a 10% interest in the project for US$7m upon publication of a Feasibility Study by the buyer.
The company said the sale is in line with its strategy to focus on developing its 6 million ounce gold inventory at its core projects in West Africa, including the Yanfolila Gold Project in Mali which it is now advancing into construction.
Ensign Resources Limited owns Antubia Resources Limited, a Ghanaian company that holds 100% of the Asheba Licence in Ghana.
The company acquired the Asheba Project from Gold Fields as part of the acquisition of the Yanfolila Gold Project. Based on historical estimates from Gold Fields, Asheba has an estimated gold inventory of 176,000oz gold @ 1.8g/t.
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