U$4.5 million (£3.4 million) divestment of Nimba Gold Project
Highlights
- Divestment of the Company’s Nimba Gold Project in Liberia to Avesoro, in return for: aggregate consideration of up to U$4.5 million
- Hamak has relinquished its rights to MEL7012725 and BMMC related entities have been granted four new mineral exploration licences over the same area
- BMMC will make the following payments to Hamak, subject to achieving the following milestones;
- US$1,000,000 following the declaration of a mineral resource containing at least 500,000 ounces of gold within the New Licence area
- US$1,000,000 following the successful grant of a Mineral Development Agreement covering one or more areas for gold mining within the New Licence area
- A 2% gross production royalty upon commencement of commercial gold mining from the New Licence Area
- BMMC may elect to pay Hamak US$2,500,000 in return for reducing the production royalty from 2% to 1%
- Hamak can now concentrate its resources on its Akoko gold project, where the Preliminary Economic Assessment remains on track for completion in late November 2026.
o Cash Milestone payments to Hamak of up to US$2,000,000
o A 2% Gross Production Royalty (“GPR”) with 1% buyback option for US$2,500,000
– Avesoro operates multiple hard rock gold mines in Liberia and Burkina Faso
– Nimba is a gold discovery made by Hamak, located 25km SE of the Ity gold mine in Ivory Coast
– Hamak to focus on Preliminary Economic Assessment (“PEA”) of the Akoko gold project in Ghana
Background
Hamak Strategy Limited (LSE: HAMA), a Company pursuing a dual strategy of gold exploration in West Africa and disciplined Bitcoin treasury management, is pleased to announce that it has entered into a binding agreement with Bea Mountain Mining Corporation (“BMMC”), a Liberian subsidiary company of Avesero Mining (“Avesoro”), in relation to its Nimba Project in Liberia. The agreement governs the relinquishment of Hamak’s rights, via its 100% owned Liberian registered company 79 Resources Inc. to the Nimba exploration licence (MEL7012725), and the simultaneous application by, and granting to, BMMC, or any nominated related entity, for one or more new licence areas that essentially cover the same area of the Nimba Project area (“New Licence Areas”). Four new licence areas in favour of related entities of BMMC and/or Avesoro have been awarded by the Ministry of Lands and Mines of Liberia, each licence not exceeding 250km2 in area to comply with relevant mining licence regulations.
The agreement provides for up to US$2 million in milestone payments to Hamak and a 2% gross production royalty, with all further exploration within the new licence areas being funded by the BMMC/Avesoro entities that hold the New Licence Areas.
The transaction gives Hamak continued exposure to Nimba’s exploration and potential production upside while allowing the Company to focus its resources on advancing the Akoko Gold Project in Ghana. BMMC also has the option to pay Hamak US$2.5 million to reduce the royalty to 1%.
The Nimba Project
Hamak’s exploration and drilling at Nimba has identified high-grade gold mineralization, including a best drill intercept of 20m at 7g/t Au near surface, intersected below an outcropping gold hosted meta-dolerite unit, interpreted as greenstone belt units. This discovery lies on the edge strong gold in soil anomaly covering 5km x 1km and which is located some 25km southwest of the multi-million ounce Ity Gold Mine in neighbouring Ivory Coast.
Binding Agreement with BMMC
The agreement follows Hamak’s search for a partner to advance Nimba while the Company focuses its resources on Akoko. BMMC operates the New Liberty Gold Mine in western Liberia and is actively pursuing gold exploration across a number of licences in the country. It is the pre-eminent gold producing company in Liberia having developed three separate gold mines in the Country and which in 2025 produced over 300,000 ounces of gold from its New Liberty Mine in Western Liberia.
The Board of Hamak believes BMMC’s operating presence and exploration experience provide a strong platform to pursue Nimba’s potential.
Under the agreement between Hamak, its wholly owned Liberian subsidiary 79 Resources Inc. and BMMC, 79 Resources Inc. has relinquished its rights to exploration licence MEL7012725. BMMC, through related entities, has been awarded four new mineral exploration licences that essentially cover the same area (the “New Licence Areas”). BMMC, through those related entities, will fund all further exploration costs in the New Licence Areas. The agreement provides for the following payments to Hamak:
- US$1,000,000 following the declaration of a mineral resource containing at least 500,000 ounces of gold within the New Licence Areas
- US$1,000,000 following the successful grant of a Mineral Development Agreement covering one or more areas for gold mining within the New Licence Areas
- A 2% gross production royalty upon commencement of commercial gold mining from the New Licence Areas
- BMMC may elect to pay Hamak US$2,500,000 in return for reducing the production royalty from 2% to 1%
Karl Smithson, Chief Executive Officer and Executive Director of Hamak, commented:
“This is a positive step forward for Hamak and a clear example of how we can build value from our exploration portfolio. We have secured an agreement with Liberia’s largest gold producer that gives our shareholders exposure to Nimba’s future success through potential milestone payments and a production royalty, while BMMC entities fund the next phase of exploration and any future mine development.
“Simultaneously, this agreement sharpens our focus on Akoko. We are progressing the Preliminary Economic Assessment of a potential low-cost, open-pit heap-leach gold operation, with work streams progressing well and completion remaining on track for late November. We see a compelling combination for shareholders: direct exposure to Akoko’s progress and retained upside from Nimba as it moves forward under BMMC.”