Fladgate advised Cassidy Gold Corporation on its sale of the Kouroussa Gold Project to Hummingbird Resources plc. The project, located in Guinea, is a near term development asset in the Siguiri Basin, which has a high grade mineral resource of 1.18 million ounces of gold at >3gt.
The Kouroussa Gold Project was sold for an initial consideration of £10 million, which will be satisfied through the issue of more than 35.2 million new ordinary shares at 28.4p per share, which is equivalent to approximately US$10 per resource ounce.
Additionally, Hummingbird will pay deferred consideration of £10 for every ounce of gold reserve published (or processed if not included in a reserve) in excess of 400,000 ounces (subject to a maximum of 1,000,000 ounces, or £6 million).
Cassidy will also retain a 2% net smelter royalty on all gold sales by or on behalf of Hummingbird over and above the first 200,000 ounces of its production and sales up to a maximum of 2.2 million ounces of production and sales.
The Fladgate team was led by capital markets partner, Paul Airley and senior associate, David Baverstock.