The 25-year renewable MDA for Hummingbird's Dugbe gold project was signed with the government, attested to by the minister of justice, ratified by the National Legislature of the Republic of Liberia, approved into law by the president and published in handbills, making it effective.

The MDA will provide long-term stability and a framework for further exploration at Dugbe, as well as feasibility studies, mine development, production and ultimately mine closure.

The MDA of the 4.2 million-ounce project, which includes a land package of about 2,000sq.km, has a three-year initial exploration term, and is flexible in that it offers the choice to extend the MDA into additional areas with geological continuity and the option to develop more than one mine and continue exploration on a regional scale.

The fiscal terms of the agreement include stabilisation of taxes and duties for 15 years, a 10% free carried shareholding for the government, royalty of 3%, income tax rate of 25%, an initial signature bonus payable of US$1.5 million to be paid to the government, and community development funds to be established in partnership with the government and communities.

Hummingbird CEO Dan Betts said the company could now look towards taking the next steps at Dugbe in the best interests of all stakeholders.

"The Dugbe gold project was Hummingbird's first asset and the original permit that was granted to Hummingbird sits within this MDA area. A number of our existing team (both in Liberia and in the UK) have been involved in this project for over a decade and I am pleased they are still part of the team at this critical juncture," he said. 

At 16.58p (US11.7c), Hummingbird's shares (AIM:HUM) have dropped 11.6% in the past six months.