(Ecofin Agency) - Coris Invest, owned by Burkinabe businessman Idrissa Nassa, recently initiated the acquisition process of the British company Hummingbird Resources. Sealing this deal would give Coris Invest control of two new gold mines, one in Mali and the other in Guinea.

Nioko Resources, a subsidiary of Coris Invest Group (CIG) led by Burkinabe businessman Idrissa Nassa, is set to make a takeover bid for the remaining shares of Hummingbird Resources, a British firm. Hummingbird itself announced the move on December 16. Its board intends to advise shareholders to take the offer, thus allowing Nioko to take over the Yanfolila and Kouroussa gold mines in Mali and Guinea, respectively. 

Nioko currently holds a 41.81% stake in Hummingbird, which is expected to rise to 71.8% after a debt-to-equity conversion. Nioko offered to buy the remaining shares at 2.67 pence per unit.

After securing shareholder approval, Nioko plans to have Hummingbird delisted from the London Stock Exchange, as part of the overhaul process necessary to ensure the sustainable viability of the mines currently owned by Hummingbird. 

The Boards of Nioko & Hummingbird announce that they have reached agreement on the terms of a recommended all cash offer for the entire issued and to be issued share capital not already owned, or agreed to be acquired, by Nioko. Read the full announcement: https://t.co/80bsqCIXzU pic.twitter.com/O96smsXJuR

— Hummingbird Resources plc (@HUM_gold) December 16, 2024

Plagued with around $40 million in debt, Hummingbird is unlikely to meet its production targets at Yanfolila this year. Commercial production at Kouroussa, which was supposed to start in the first quarter of 2024, was only achieved last month.

“Hummingbird requires a very material amount in equity financing to address the significant issues facing the business as a whole including urgently required remediation to the Kouroussa process plant infrastructure, resolution of contractual disputes, purchase of critical spares, and alleviate the substantial creditor overhang to improve operational performance,” stated Geoff Eyre, the new CEO overseeing the company's restructuring.

Even after securing shareholder approval, Nioko has more steps to take before closing the Hummingbird deal. Most notably, the CIG subsidiary needs the approval of the Malian and Guinean authorities. 

It is worth noting that Hummingbird and the Malian government are in talks over applying the 2023 mining code to the Yanfolila gold mine.

This article was initially published in French by Emiliano Tossou