Hummingbird has announced the remobilisation of Corica Mining Services at the Kouroussa Gold Mine in Guinea following the suspension of work on March 17, 2024. This move is part of efforts to mitigate risks around the company's working capital due to recent interruptions. CIG SA, Hummingbird’s largest shareholder, has agreed to provide a US$10 million loan to ensure continuity of operations during the ramp-up phase.
Corica has agreed to return to the site and continue ramping up operations toward commercial production. All Corica equipment has been mobilised and arrived on site, with operations already commenced. An operational plan is being implemented and is expected to fully ramp up by the beginning of Q3 2024. This plan will be supported by an additional ETASI fleet, which is currently being mobilised and is expected to arrive at the site over the coming weeks. The agreement between Hummingbird and Corica includes a framework for negotiating and resolving key disputes under the terms of the mining contract.
To support the transition back to full operations, CIG has agreed to provide Hummingbird with a short-term loan of US$10 million. The loan, which is unsecured, attracts interest at a rate of 14% per annum and has a maturity date of September 30, 2024, extendable by mutual agreement. Hummingbird is also in discussions with its primary lender, Coris Bank International, to mitigate the financial impacts of the suspension and will provide updates in due course.
Dan Betts, CEO of Hummingbird, expressed optimism about the agreement with Corica, highlighting the commitment from both parties to find practical solutions to ongoing disputes. He also noted that the support from CIG and ongoing discussions with Coris will enable a smooth transition back to full operations at Kouroussa. Betts emphasized the importance of increasing the mining of higher-grade material and accelerating plans to reach a 200 Koz per annum production profile. He thanked everyone involved for their patience, resilience, and diligence in working through the situation.
