Hummingbird Resources has finalised a $16.4m (£13.43m) agreement with Mali's military-run government to operate the Yanfolila gold mine under the country’s 2023 mining code.
Mali’s 2023 mining code allows the state to increase ownership in new mining projects.
The latest agreement, executed by Hummingbird subsidiary Société des Mines de Komana and a government commission, resolves audit issues and provides a framework for ongoing operations and development at the mine.
As part of the agreement, Hummingbird will pay the settlement in two instalments and benefit from a 2% reduction in Mali's special tax on certain products.
Furthermore, the company has consented to relinquish historical value-added tax credit claims of the same value and will put forward a plan to boost production and prolong the mine’s operational life.
Hummingbird interim CEO Geoff Eyre said: "This agreement represents a significant milestone in our relationship with the Government of Mali and provides a stable framework for our continued operation and development of the Yanfolila Gold Mine.
“Through constructive dialogue with the government, we have addressed historical matters while securing important operational agreements that support our long-term investment in the country. The renewal of exploration permits and extension of our mining permit perimeter demonstrates Mali's commitment to our partnership."
The latest move follows Hummingbird's agreement for its acquisition by Nioko Resources, a subsidiary of its creditor CIG.
This deal is aimed at helping Hummingbird bring in additional financing as it battles financial difficulties and operational hurdles.
In September 2024, both Allied Gold and B2Gold reached agreements with the Malian Government over operation of the Sadiola gold mine and Fekola mine, respectively.
Earlier this month, the government gave the green light to Allied Gold’s Korali-Sud project, granting the company a 35% stake under the new mining code.
Korali-Sud forms part of the Sadiola gold project.
Meanwhile, Barrick Gold recently halted operations in Mali after its government reportedly seized gold stockpiles valued at $245m (C$352.18m).
