Hummingbird Resources Moves Forward With Acquisition Strategy

Author: Dylan Bailey Updated: 03-06-2025 04:37 PM

Hummingbird Resources Commences Takeover Implementation

Hummingbird Resources PLC, a prominent player in West African gold mining, has made headlines with its recent announcement regarding a takeover by Nioko Resources Corporation. This initiative is in alignment with the UK Takeover Code. As part of this strategy, Nioko, a subsidiary of CIG SA, has acquired acceptances for over 89% of Hummingbird's shares. They anticipate that when acceptances reach 90%, they will have the legal ability to pursue a compulsory acquisition of the outstanding shares of Hummingbird.

The Impact of CIG SA's Investment

CIG SA has been a notable stakeholder in Hummingbird, holding a 42% share since early 2023. Their investment relationship has been multifaceted, involving various loans that supported Hummingbird through turbulent financial times. The transition of debt into equity is crucial as it aims to provide Hummingbird shareholders with an avenue to realize some value in their investments. This strategic move also played a pivotal role in the recent delisting of Hummingbird from the AIM market of the London Stock Exchange.

Ownership of Pasofino Gold Limited

Currently, Hummingbird Resources possesses approximately 50.8% of the common shares in Pasofino Gold Limited. This shareholding translates to about 59,427,783 common shares along with 2,700,000 warrants, which can be converted into common shares. Hummingbird's investment in Pasofino is carefully monitored, with plans to adjust holdings based on economic and market trends.

Future Plans for Corporate Governance

While Hummingbird does not have immediate plans concerning its shares in Pasofino, they have exercised their rights under a previously established investor rights agreement to influence changes in Pasofino's Board of Directors. According to communications sent to Pasofino, Hummingbird intends to appoint up to three new individuals to the board.

Legal Actions Regarding Shareholder Rights

Challenges are underway as Hummingbird and Nioko contest the legitimacy of the Shareholder Rights Plan Agreement that Pasofino invoked. They are preparing to potentially bring matters before legal authorities in British Columbia and Ontario in an effort to disrupt or terminate the Rights Plan established by Pasofino.

Registered and Corporate Offices

Hummingbird has its registered office at 26 Mount Row, London, while Pasofino operates from 366 Bay Street, Suite 200, Toronto. These locations underline their commitment to transparency and shareholder engagement during this transition phase.

Frequently Asked Questions

What is the current status of Hummingbird Resources' takeover?

Hummingbird Resources is currently in the process of a takeover by Nioko Resources Corporation, having received acceptances for over 89% of their shares.

How will the takeover affect Hummingbird shareholders?

The takeover provides Hummingbird shareholders a chance to realize value for their investments as it leads to the delisting from the AIM market.

What stake does Hummingbird have in Pasofino Gold Limited?

Hummingbird owns approximately 50.8% of Pasofino with 59,427,783 common shares and additional warrants.

Are there any legal proceedings involving Hummingbird Resources?

Yes, Hummingbird and Nioko are challenging Pasofino's Shareholder Rights Plan Agreement and may take legal action.

What is Hummingbird's strategy regarding its investments?

Hummingbird will evaluate its investments based on various external market conditions, looking to adjust its holdings as necessary.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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