Pasofino Gold is now the sole owner of the Dugbe gold project in Liberia after consolidating a 100% interest from Hummingbird Resources , a deal which the companies had agreed for over a year.
In November 2022, Pasofino announced its intention to exercise its right under an option agreement to cause Hummingbird to sell its 51% interest in the Dugbe project to become a 100% owner (prior to giving effect to the 10% carried interest of the government of Liberia).
As consideration, the Canadian-based Pasofino agreed to issue a certain number of common shares to Hummingbird such that 51% of its outstanding share capital will be held by its UK-based counterpart.
In a press release last week, it was revealed that approximately 54 million common shares would be issued.
“With Pasofino now owning a net 90% interest in the Dugbe gold project, the company is in a position to progress with the development of the project,” Ian Stalker, former CEO and now lead advisor to Pasofino, stated in Tuesday’s news release.
The 2,302 km2 Dugbe gold project is situated within the southwestern corner of the Birimian Supergroup, which is host to most West African gold deposits.
A mineral development agreement issued by the government of Liberia for the project secures its mining rights and terms for 25 years.
To date, two deposits have been identified on the property: Dugbe F and Tuzon discovered by Hummingbird entities in 2009 and 2011 respectively.
The deposits are located within 4 km of the Dugbe shear zone, which is thought to have played a role in large scale gold mineralization in the area.
After 82,000 metres of core drilling plus fieldwork, a feasibility Study was completed in June 2022, outlining an 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.
Following the completion of a feasibility study, the Dugbe project was subject to a joint venture agreement between Pasofino and Hummingbird, under which the former held a 49% economic interest.
Earlier this year, the partners initiated a joint strategic review process to maximize value for the project.
With respect to this, Stalker noted that the company, now the 100% project owner, will continue its strategic review given interest expressed during the review process.