Mali – West African gold company Hummingbird Resources has completed the plant earthworks at its flagship 1.8 Moz Yanfolila gold project in Mali ahead of commencing full-scale construction with its first gold pour targeted in 2016.
Hummingbird has also extended the US$10 million bridge facility by a further US$5 million with Taurus Funds Management for the on-going development work at Yanfolila.
- Plant earthworks at Yanfolila successfully completed
- Taurus has extended the bridge facility by US$5 million – bridge facility now totals US$15 million
- Use of proceeds expected to include:
- Commencement of initial pit dewatering
- Land acquisition around mine site
- Finalisation of due diligence in preparation for full draw down
“We have recently completed the plant earthworks which consisted of the excavation, landscaping and compaction of over 80,000 cubic meters of earth and we continue to believe that the development of Yanfolila during the downturn will set Hummingbird apart as a cash generative miner offering investors leveraged exposure into the gold space,” says Hummingbird Resources CEO Dan Betts.
Betts continues: “The extension of the bridge facility allows Hummingbird to maintain its schedule as we conclude all the necessary technical, financial and legal due diligence prior to first draw on the main facility. This extension demonstrates both Taurus’ continued commitment to the development of the Yanfolila gold project, and their belief in the robust nature of the project at a time when the gold market appears to be suffering in confidence.”
Yanfolila earthworks update
In June 2015, Hummingbird Resources commenced initial earthworks consisting of the excavation, placement, and compaction of fill materials of over 80 000 m3. Earthworks are now complete, consisting of constructing the process plant terrace; plant infrastructure terrace; including reagent storage and handling; change house and security facility areas; power plant terrace; in plant roads; and storm event pond.
The objective of this work, was to complete the preparation of level compacted areas at the Yanfolila plant site for use by the civil contractor to place structural concrete equipment foundations and slabs and to allow the overall construction schedule to be maintained.
On 11th August 2014 Hummingbird entered into a Mandate Letter and Bridge Loan Agreement with Taurus Mining Finance Fund, and subsequently drew down the full $10 million available at that time under the Bridge Loan Agreement. The Mandate Letter set out the key terms of the refinancing mandate for a $75 million facility to repay amounts due under the Bridge Loan Agreement and fund the construction of the Yanfolila project. The company has now successfully extended this Bridge Loan Agreement by a further US$5 million to a total of US$15 million.
The proceeds of this will be used to continue moving the project towards production and include; initial in pit dewatering, further land acquisition across the mine site and finalisation of due diligence in preparation of full draw down.
Hummingbird is currently finalising the documentation with Taurus for the re-financing of the bridge loan and initial draw down of the $75m facility in order to commence full construction now that plant earthworks are completed.
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