Hummingbird says Pasofino Gold sale in the works

Hummingbird Resources (AIM: HUM) said the potential acquisition by an unnamed company of its 53%-owned subsidiary Pasofino Gold (TSXV: VEIN) has been opened to more potential bidders.

Pasofino Gold, which owns the Dugbe gold project in Liberia, announced in September that it had entered into an exclusivity agreement with a counterparty. This company, which offered $75 million (C$105 million) cash for Pasofino, was originally given until Nov. 7 to firm up its interest in the gold junior.

Pasofino continues discussions with the interested party on a non-exclusive basis, facilitating the potential buyer’s efforts to secure financing for the acquisition, Hummingbird said.

“Pasofino has also expanded access to its data room to additional interested parties and is arranging preliminary site visits for those conducting due diligence as part of their assessment,” the company noted.

Pasofino has been looking to enhance the value of its Dugbe project by securing funding for the various optimization initiatives outlined in its feasibility study in 2022. These include a review of the initial capital cost and operating costs assumed in study and the mine’s energy supply.

The Dugbe project is situated within the Birimian geological province, which is host to the majority of West African gold deposits. The property covers 2,559 km2 and contains two deposits that are 4 km apart, both discovered by its previous partner and now majority shareholder Hummingbird Resources.

The 2022 feasibility study outlined a open-pit mineral reserve estimate of 2.76 million oz. of gold, planned to be mined over 14 years, with an output of 200,000 per annum for the first five years.

In late 2023, Pasofino took full ownership of Dugbe after acquiring Hummingbird’s 51% interest.