20th Jun 2016 13:54
LONDON (Alliance News) - Hummingbird Resources PLC, the AIM-listed West African gold company, on Monday said shareholders approved proposals for the completion of a GBP49.5 million equity fundraising.
Hummingbird, which raised the money through a placing, subscription and overallotment option, issued 225.2 million shares at 22 pence each. The company had expected to raise between GBP45.8 million and GBP52.7 million.
The company said it agreed to issue 402,966 finders warrants exercisable at 22p until June 21, 2019 in connection with the fundraising.
The money will be used for the detailed engineering and construction of Hummingbird's Yanfolila Project in Mali, where production is targeted in 2017, and for general corporate purposes.
"Today is a significant day for Hummingbird. We are delighted with the support from both our existing and new shareholders in this fundraising," Managing Director Dan Betts said in a statement.
"We can now build Yanfolila into one of the highest margin gold projects in Africa with first gold pour targeted for 2017 generating over USD70 million of free cash-flow in the first full year of steady rate production. We look forward to the construction phase of Yanfolila and the announcement of further key milestones over the coming months," Betts said.
Shares in Hummingbird were down 3.3% at 22.00p on Monday afternoon in London.
By Samuel Agini; [email protected]; @samuelagini
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