(Ecofin Agency) - Coris Invest has made an offer to gradually take over Hummingbird Resources, a British firm that operates two gold mines in Mali and Guinea. Led by Burkinabe businessman Idrissa Nassa, the acquisition requires multiple regulatory approvals before proceeding.

UK-based Hummingbird Resources, which operates the Yanfolila gold mine in Mali and the Kouroussa gold mine in Guinea, has signed an agreement to increase its main shareholder Nioko Resources Corporation's stake. Hummingbird disclosed the deal on November 28. Details indicated that Nioko, part of the Coris Invest Group (CIG) owned by Burkinabe mogul Idrissa Nassa, will ultimately hold 71.8% of Hummingbird's shares under the new deal. 

The deal will proceed in two phases and lead to converting a $30 million debt from CIG into new shares at 2.67 pence each. The transaction awaits shareholder approval and a formal buyback offer for the remaining shares from Nioko.

This morning, the Company announced that, as part of the proposed debt-to-equity conversion outlined on 6 November 2024, it has entered into a conditional binding subscription agreement with CIG and Nioko Resources Corporation.

Read the full release: https://t.co/iOVxINNcEV pic.twitter.com/OuD7j7yPGk

— Hummingbird Resources plc (@HUM_gold) November 28, 2024

The subscription forms part of a CIG takeover bid for Hummingbird. Through the operation, Nassa’s group could gain control over two gold mines and the Dugbe gold project in Liberia. Nioko Resources and its parent company, CIG, plan to delist Hummingbird from the London Stock Exchange once the takeover is finalized, pending regulatory approvals in Mali, Guinea, and Liberia. 

The Yanfolila and Kouroussa gold mines have a combined annual production capacity of 200,000 ounces. However, due to financial and operational challenges, Hummingbird has struggled to maximize the potential of these assets recently. As a result, the company projects a gold output of between 55,000 and 65,000 ounces at Yanfolila and between 45,000 and 55,000 ounces at Kouroussa for 2024.

Emiliano Tossou