Hummingbird To Buy Gold Fields's Mining Assets In Mali For $20 Mln In Stock

(RTTNews) - Hummingbird Resources PLC (HUM.L), the gold exploration and development company with assets in Liberia, announced that it has entered into a conditional sale and purchase agreement to acquire all of Gold Fields Limited's (GFI) mining and exploration interests in Mali, represented principally by the Yanfolila Project, for $20 million in stock.

The acquisition of these interests is to be satisfied through the issue of 21.26 mimllion ordinary shares in the capital of the Company. These Consideration Shares are to be issued at an issue price of 56 pence per share.

The acquisition is conditional upon shareholder approval of an ordinary resolution to provide the Directors with the sufficient authority to allot the Consideration Shares, and upon the Consideration Shares being admitted to trading on AIM.

After the transaction, Gold Fields will become Hummingbird's largest shareholder, with a 26.3% stake.

A fee of up to $1 million is also payable by Hummingbird if the shareholder resolution to approve the issue of the Consideration Shares is not passed.