Africa-focused Hummingbird Resources (AIM: HUM) announced on Wednesday it had reached an an agreement with Mali’s military-led government, which outlines operational parameters for the Yanfolila gold mine under the 2023 Mining Code.
The deal, negotiated by Hummingbird’s subsidiary Société des Mines de Komana (SMK) and a government commission, resolves outstanding audit findings and provides a framework for the mine’s continued operation and development.
As part of the deal Mali will grant Hummingbird a 2% reduction on the country’s special tax on certain products and SMK will accept a $16.4 million settlement to be paid in two installments. The miner also agreed to waive historical value-added tax credit claims of the same amount, and will present a plan to enhance production and extend Yanfolila mine’s life.
Hummingbird has agreed to pay Mali $16.4m and waived value-added tax credit claims worth another $16m in return for the renewal of exploration permits on the Yanfolila gold mine.
SMK has committed to providing a comprehensive operating plan, addressing capital investments required to maximize current production and extending Yanfolila’s mine life.
Hummingbird, currently being acquired by creditor Nioko Resources, highlighted Mali’s commitment to renewing exploration permits and extending the Komana mining perimeter.
The Yanfolila gold mine is a high-grade open pit operation with significant underground potential. It produced 83,965 ounces of gold in 2023 and has a reserve base of 493,000 ounces of gold grading 2.5 g/t.
This agreement comes as West African governments, particularly in the Sahel, take aggressive measures to assert control over mining operations. On Tuesday, Barrick Gold temporarily halted operations in Mali after the government began seizing gold, weeks after issuing an arrest warrant for its chief executive officer, Mark Bristow.
Other companies, including Allied Gold (TSX: AAUC) and B2Gold (TSX: BTO; NYSE-A: BTG), have recently struck agreements with the Malian government to secure their operations.
Source: MINING.COM – Read More
