Pasofino Gold Announces Update with Respect to Mineral Development Agreement
Default Notice from Liberian Government Threatens Flagship Dugbe Project Viability
On December 29, 2025, Pasofino Gold Limited announced it received an "Alleged Default Notice" from the Government of Liberia regarding its Mineral Development Agreement (MDA) for the Dugbe Gold Project. The government alleges that the company has failed to meet specific obligations, including timely payments and the completion of certain mandated activities. The company has 30 days (until January 15, 2026) to contest the claims and 60 days (until February 14, 2026) to cure the defaults before the government can move toward terminating the agreement. Concurrently, the company stated it is still progressing with an 11,000m infill drilling program and an update to its 2022 Feasibility Study.
This news is highly material and significantly negative. The Dugbe Gold Project is Pasofino’s sole flagship asset, and the MDA is the legal foundation for its 25-year mining rights. - Existential Risk: If the MDA is terminated, the company effectively loses its right to develop the project, rendering the stock nearly worthless. - Financial Credibility Gap: In October 2025, Pasofino raised C$12 million, specifically stating a portion would be used to "repay certain amounts owing... to the Government of Liberia." The receipt of a default notice for "timely payments" just two months later suggests either the financing was insufficient to cover the total arrears or the relationship with the host government has severely deteriorated. - Majority Shareholder Complications: Pasofino is 50.8% owned by Hummingbird Resources (now controlled by Nioko Resources). The internal governance struggles and previous "indirect takeover" friction mentioned in historical news likely complicate the company's ability to negotiate a swift resolution or secure further emergency funding.
Pasofino Gold is focused on the Dugbe Gold Project in southern Liberia. The project consists of two main deposits, Dugbe F and Tuzon, located within the Birimian Supergroup. - Resources: 3.3 Moz Au (Measured & Indicated) at 1.37 g/t. - 2022 Feasibility Highlights: 14-year mine life, 200,000 oz/year for the first five years, and an AISC of $1,005/oz (based on 2022 costs). - Status: Currently updating the Feasibility Study to account for higher gold prices and updated input costs.