Hummingbird Resources announced on Friday that it has raised the US$3.8 million through the placing of 11 100 000 new ordinary shares at 26 pence per share.
Hummingbird is currently developing its 2.2Moz Yanfolila gold project in Mali to production targeted by the end of 2017.
“The additional funds raised through this placing, at a premium of 18% to our recent raising in June, gives us the optionality to unlock additional value at Yanfolila with added flexibility to look at developing additional near mine resources whilst we target production next year,” says Dan Betts, MD of Hummingbird Resources.
“Another avenue for considerable further upside is our Gonka deposit, 5 km south of the gold plant location, which is not currently included in the Yanfolila mine plan,” he says.
Gonka’s scoping study, released in February 2016, showed the potential for mining ore at greater than 4.5 g/t. Further infill drilling, if successful, could bring this into the reserves category and potentially add material ounces to the company’s production profile for very limited capital.
Application for the admission of the placing shares to trading on AIM has been made and admission is expected on 15 August 2016.
Following the placing Hummingbird will have a total of 343 241 250 shares in issue.