Hummingbird Resources has signed an exclusivity agreement with an undisclosed potential buyer to acquire its subsidiary Pasofino Gold for a total consideration of $75m (£56.72m).
The offer represents a purchase price of $0.66 per Pasofino common share. Currently, Hummingbird owns a 53% stake in Pasofino.
After a strategic review that involved discussions with multiple parties, Pasofino Gold has taken a step towards a potential acquisition.
The agreement has been signed with a buyer, which has already conducted a site visit.
The exclusivity period granted to the potential buyer extends until 7 November 2024, with the final agreement contingent upon satisfactory due diligence and necessary approvals.
In a press statement, Hummingbird said: “The offer grants the potential purchaser an exclusivity period until 7 November 2024, conditional on the potential purchaser and its financing partners being satisfied with the results of their due diligence and obtaining all necessary internal approvals.”
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By GlobalData
In anticipation of the acquisition, Pasofino is planning interim funding to support the feasibility study optimisation efforts at the Dugbe Gold Project in Liberia.
Located in southern Liberia within one of the last remaining underexplored parts of the Birimian geological province, the Dugbe Gold Project is 100% owned by Pasofino through its wholly-owned subsidiary ARX Resources.
Meanwhile, last year, Hummingbird reported first gold pour at the Kouroussa Gold Mine in the Siguiri Basin, Guinea.
The mine is the company’s second West African operating gold asset, with more than four grams per tonne in open-pit operations.
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