This extension allows both parties to work together towards a fully funded finance package for the Yanfolila gold project in Mali without the timing of the bridge impacting on discussions.
Additionally, engineering consultant SENET has agreed to defer $1.7 million of fees due for payment in April 2016, for an additional 12 months.
SENET completed the process design and engineering study as part of the definitive feasibility study (DFS).
The DFS results, which were released in January this year, demonstrates significant enhancement to its economics as an open-pit, low-cost gold mining operation.
Meanwhile, Hummingbird recently reported the completion of a further study on Gonka, an extension of the Yanfolila project and located just 5 km south of Yanfolila.
The Gonka study adds further resources and value to Yanfolila and adds 92 000 oz at 2.3 g/t gold for a four year in open pit and 77 000 oz at 4.5 g/t for the underground.
The results from this analysis were highly encouraging, revealing that by incorporating Gonka, a significant incremental uplift in the project NPV by US$24 million can be achieved relative to the definitive feasibility study (DFS), with a total project NPV of $166 million using a gold price of $1 250/oz.
Adding Gonka to the Yanfolila DFS increases the NPV to $166 million from $142 million at a $1,250/oz gold price and to $101 million from $88 million at a $1,100/oz gold price.
Commenting on the announcement, corporate advisory firm SP Angel believes the bridge facility extension and the deferral of the SENET fees will help Hummingbird complete finance of Yanfolila project.
Cantor Fitzgerald commented that the deferral is positive for Hummingbird Resources’ short term financial position and hopes that the potential lender can create a financing package that gets the Yanfolila project built and cash flow generative within the next six months.