LONDON: Hummingbird Resources plc signed a binding heads of terms agreement for the acquisition of the Kouroussa Gold Project located in Guinea, from Cassidy Gold Corp subject to standard conditions precedent including government approval.

Initial consideration of £10 million satisfied through the issue of 35.248,441 Hummingbird new ordinary shares at 28.4p, currently representing 9.1% of the enlarged share capital:

• Equivalent to approximately US$10 per resource ounce
• All significant beneficial owners of Cassidy subject to 12 month lock in and 12 month orderly market
• Deferred consideration of £10 for every ounce of gold reserve published in excess of 400,000 ounces (subject to a maximum of 1,000,000 ounces)
• Additionally, Cassidy shall retain a 2% net smelter royalty on all gold sales by or on behalf of the Company over and above the first 200,000 ounces of its production and sales up to a maximum of 2.2m ounces of production and sales.

Dan Betts, CEO of Hummingbird, commented: “The intended acquisition of Cassidy Guinea and the Kouroussa Gold project marks a transformational step in the development of Hummingbird and the execution of our strategy to become a multi asset gold producer in the near term.

“Kouroussa is a high grade, high margin project with a number of similarities and synergies with Yanfolila which we are confident we can harness to our advantage.  Over the last few years we have looked at a vast number of projects and Kouroussa ticks every box in terms of a next mine for Hummingbird. It is of the scale, geology, process circuit design and grade that are all perfect for our team’s experience to be put to immediate use, and it is in line with our strategy to focus on high margin projects.

“I am delighted to welcome the shareholders of Cassidy Gold to the Hummingbird share register and I am pleased that our West African Banking partner, Coris, have indicated their keen support for the financing of the project as may be required.  Our plan is to spend the next 6 months refining the detailed engineering and design of the project whilst initiating construction and ordering long lead items, with an aggressive timetable to try to accelerate the build and pour gold within two years of the acquisition.

“We look forward to updating the market as the development of Kouroussa progresses.”

David Crichton-Watt, Chairman of Cassidy Gold, said: “As long term gold investors, we were attracted to the Kouroussa project by its exceptional grade and exploration potential.  Having taken the project to the point where it is ripe for development into a significant mine, we are delighted to become significant shareholders in Hummingbird whose track record together with the proximity and uncanny project similarities with Yanfolila means they are the ideal partners to develop the project and unlock the potential of Kouroussa rapidly for all stakeholders.  I am personally delighted to have the opportunity to participate in this journey with Hummingbird as a highly supportive long term shareholder.”