AIM-listed Hummingbird Resources has announced a $45 million senior secured term facility and a $10 million cost overrun facility with Taurus Funds Management for its Yanfolila gold project in Mali.
The total project capex for Yanfolila is $88 million, so the project is now fully funded into positive cash flow with the $71 million of equity raised earlier this year.
Hummingbird is on budget and schedule for first gold pour from Yanfolila by the end of 2017, targeting production of 132 000 oz in the first year.
“I am absolutely delighted to have reached this milestone after all the hard work by all the parties,” says Hummingbird Resources CEO Dan Betts.
“Following successful equity raisings totalling $71 million earlier this year, construction is now well under way with over 20% of the project capex committed.
“We are very pleased with the progress made to date on site and securing this additional debt facility sees the final corporate hurdle overcome in order to expedite the construction process ahead of our initial gold pour, targeted by the end of 2017.
“With the significantly lower debt gearing on the project we are happy that it now satisfies Taurus’ requirements. Taurus has completed all technical due diligence and the extension of the bridge facility by a further $10 million is representative of the commitment to Yanfolila.”
Betts added that there are no significant conditions precedent required to refinance the bridge facility into the first draw of the term facility.
“It is exciting to go into 2017 with a fantastic team in place and a fully funded, high margin gold project already well into the construction phase,” he noted.
Michael Davies, executive director of Taurus said the company has completed an extremely rigorous due diligence process on the Yanfolila gold project and is pleased to sign the mandate for the debt facility with Hummingbird.
“We continue to work closely with Hummingbird as they develop and commission the project and look forward to a long and fruitful relationship.”