Mali – Hummingbird Resources, the AIM-listed West African gold exploration and development company, recently announced the successful placing of approximately US$3.9 million, before expenses, with existing and new institutional investors at 30 pence per Placing Unit.
The proceeds will be used in conjunction with the proposed US$75 million Taurus Funds Management facility to bring its Mali-based Yanfolila gold project into production, which is expected in H1, 2016. Construction on the project is targeted to commence shortly.
In addition, to allow existing shareholders to participate, the company intends to conduct an open offer to shareholders of up to 6,712,284 million New Ordinary Shares at the Issue Price, each also offered with half a Warrant, to raise up to US$3 million.
Dan Betts, CEO of Hummingbird Resources, says: “This funding solution in tandem with our proposed Taurus debt facility of US$75 million, will see us funded to start construction at Yanfolila. We aim to deliver our maiden gold pour at Yanfolila in 2016.
“The results of the recent Optimisation Study at Yanfolila highlight a low-cost, low technical risk and quick route to gold production. The study shows a project that will deliver 100 000 ounces of gold production in its first year with 79 000 ounces per year production over its mine life at an all in cash cost of US$733 per ounce. With the focus predominantly on oxide ore, which recently increased to 650 000 ounces, we can create a high margin, high return operation. Additionally, there are multiple options to improve the project economics significantly, and importantly we have the team with the operational experience to achieve this.
“Construction of the mine is targeted to commence in the coming weeks and we look forward to delivering our first mine and generating significant free cash flows to our shareholders as we build a leading next generation gold company in Africa.
“Additionally, the Dugbe Project, in Liberia, remains integral to the company as we continue to do work to improve the existing technical studies. The project, with 4.2Moz gold and a 20 year mine life, has significant scale.”
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