African Gold Group Inc. said Dec. 12 that the binding letter of intent it signed with Hummingbird Resources Plc in September on a potential partnership to develop African Gold's Kobada gold project in Mali was terminated and the companies ceased talks over the execution of a definitive agreement for Hummingbird's planned acquisition of African Gold shares.
Hummingbird was supposed to acquire up to 19.9% of the issued shares of African Gold for a total investment of C$8 million, in accordance with the LOI.
African Gold did not disclose more details on the deal's termination but said it is evaluating its legal rights and potential remedies against Hummingbird while it continues to work on compiling historical data on Kobada and the Madougou gold project in Burkina Faso to confirm the projects' geological models as it designs exploration programs at the properties.
