Yesterday Hummingbird announced it had signed an MOU with Kola Gold Limited (not to be confused with AIM listed Kolar Gold) to create a new company called Cora Gold Inc. Both Hummingbird and Kola will put their Mali and Senegal gold exploration assets into Cora. Post-transaction, the Yanfolila Mining Licence will be Hummingbird’s only mineral licence. This transaction will double Hummingbird’s exploration footprint in West Africa, with 10 main licences covering 1600km2 of exploration ground. Assuming the transaction completes, Hummingbird will own 43% of the new vehicle with Kola owning 57%. Conditions include completing due diligence and Cora raising $4m of new money from “third parties”. Importantly Hummingbird will retain buy-back rights for discoveries close to Yanfolila. Speculative Buy – 30/06/16
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