LONDON (ShareCast) - (Sharecast News) - Hummingbird Resources updated the market on the Dugbe Gold Project and the acquisition of ARX Resources by Pasofino Gold on Wednesday.

The AIM-traded firm noted that Pasofino had announced the closing of the acquisition of ARX on Tuesday.

ARX is Hummingbird's joint venture partner on the Dugbe Project in Liberia, with completion of a CAD 10.02m (£5.9m) equity financing also completing at the same time.

It said Pasofino was planning to use the net proceeds from the fundraise for exploration and development work at Dugbe.

Pasofino would earn its 49% stake of the project once certain criteria were met over a two-year earn-in period, including completion of a mutually-agreed exploration programme, and completing a definitive feasibility study under joint management committee oversight.

In addition, Pasofino would cover all overhead and operating costs associated with the project during the earn-in period.

Hummingbird noted that progress had already been made by both Pasofino and itself at its joint management committees to progress the Dugbe Project.

With funding now secure, the company said it would provide further updates to the market as the project's development accelerated.

"We note the closing of the Pasofino financing and are excited to see work commencing on the Dugbe Project now that the qualifying conditions to commence the earn-in have been met," said chief executive officer Dan Betts.

"The Dugbe Project already has a significant mineral endowment which Hummingbird discovered from first principles and we are very excited to support Pasofino in its work to both prove the robust economics of the project and to showcase what we believe to be a world class gold province which is still in the embryonic stages of discovery."

At 1555 BST, shares in Hummingbird Resources were down 3.86% at 36.53p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE