What we own

The Group entered into a royalty financing agreement with the AIM-listed Hummingbird Resources PLC (‘Hummingbird’) in December 2012 in relation to Hummingbird’s Dugbe 1 gold project in Liberia. In exchange for US$15.0m, payable in three tranches of US$5.0m, the Group is entitled to a 2% life of mine NSR royalty from any sales of gold mined within a 20km radius of a specified point in the Dugbe 1 Resource.

Performance

2020 saw renewed interest from third parties for the Dugbe 1 project. In June 2020, Hummingbird announced that it had entered into a conditional earn-in agreement with ARX Resources
Limited (‘ARX’) in respect of the project, which required ARX to pay Hummingbird US$2m in cash, complete a DFS, and cover all project costs over the two-year earn-in period in exchange for
up to 49% of the project.

In September 2020, ARX was acquired by Pasofino Gold Limited (‘Pasofino’), who also raised C$10m in new equity for exploration and development work at Dugbe 1.
Results have been received for the first drill holes of the planned 5,500 metres drill programme with best results so far of 26.7 metres at 1.44 g/t gold from 86.9 metres. These are the first
holes drilled at Dugbe 1 since 2014.

Our royalty would survive any change of control, and depending on how this is structured, could result in Anglo Pacific electing to terminate its royalty in return for the US$15m invested.