Hummingbird Resources has announced an update on the 25-year Mineral Development Agreement (MDA) with the Government of Liberia (GoL) over a land package that includes Dugbe Gold Project.
Hummingbird Resources said that the update on the MDA is over a land package spanning approximately 2,000km2, and includes the company’s 4.2Moz Dugbe Gold Project.
The company has signed the MDA with the GoL, 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.
The present agreement is expected to provide necessary long-term framework for further exploration, feasibility studies, mine development, production and ultimately mine closure.
The company said that the Dugbe MDA forms 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.
Hummingbird Resources CEO Dan Betts said: “The completion of the MDA is 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. The Dugbe Gold Project was Hummingbird’s first asset and the original permit that was granted to Hummingbird sits within this MDA area.
“A number of our existing team (both in Liberia and in the UK) have been involved in this project for over a decade and I am pleased they are still part of the team at this critical juncture. 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.”
The company said that the update in the MDA includes an initial three-year exploration term, with ability to extend into additional areas with geological continuity along with flexibility to develop more than one mine and continue exploration on a regional scale, including fiscal terms.
Liberia National Investment Commission Chairman Molewuleh B. Gray said: “Our Government is committed to resuscitating the mining sector. H.E President George Manneh Weah, in support of our 5-year Development Plan, continues to drive reforms to demonstrate to the world that Liberia is open and ready for business.”
The Dugbe Gold Project has resources totaling 4.2Moz of gold.