(Ecofin Agency) - Pasofino Gold leads the Dugbe gold project in Liberia. The company published a feasibility study in 2022 that estimated the mine would require $397 million to develop. Three years later, construction has not started at the site.

Pasofino Gold now plans to raise C$5 million (about $3.6 million) through a private placement, mainly to fund an updated feasibility study for Dugbe. The company announced the move on April 30, as it tries to revive the project with its main shareholder, Hummingbird Resources. 

The Dugbe project has a net present value of USD524 million. The 2022 feasibility study projected that Dugbe could produce 2.27 million ounces of gold over 14 years, with an initial investment of USD397 million. Despite this potential, the project has seen little progress, partly due to Hummingbird’s financial challenges.

Therefore, Pasofino Gold launched a strategic review of the Dugbe project in 2023 to evaluate its options, including a possible sale. However, the company suspended this review after signing a new cooperation agreement with its partner on April 3. 

A new agreement to mark the "rebirth" of Dugbe

The new agreement aims to restructure the Dugbe project’s development. It introduces a plan to update the 2022 feasibility study and reorganize Pasofino’s Board of Directors. Both parties want to speed up pre-construction work, allocating a total budget of $25 million: $10 million in 2025 and $15 million in 2026.

Pasofino CEO Brett Richards described the agreement as the “rebirth” of the Dugbe Gold Project, highlighting the strengthened partnership, committed funding, and new strategic focus. The project relaunch comes as gold prices rise, with the metal surpassing $3,000 an ounce this year and JP Morgan predicting it could reach $4,000 by mid-2026. 

Richards said the revised feasibility study will update cost and gold price assumptions to maximize recoveries and profitability.

A strategic project for Liberia

Pasofino’s new board will decide on construction once the revised study is complete. The planned work should finish within 12 months, but the company has not set a start date yet.

If developed, the Dugbe gold project could mark a significant shift for Liberia's gold sector, which relies heavily on artisanal and small-scale operations. A large-scale mine like Dugbe would create new tax income for the country and enhance the appeal of its mining industry. 

An agreement made in 2019 with Hummingbird gives Liberia a 10% stake in the project’s capital at no cost, along with a 3% royalty on gold production and a 25% tax on profits.

Aurel Sèdjro Houenou