1st Sep 2015 08:54
LONDON (Alliance News) - Hummingbird Resources PLC on Tuesday said it has received an additional USD5.0 million from Taurus Funds Management for the on-going development work at its flagship Yanfolia gold project in Mali.
In addition, the company said it has finished the plant earthworks, which will be followed by the construction of the project, before it pours its first gold sometime in 2016.
Taurus has already supplied Hummingbird with USD10 million bridge facility, meaning the addition brings the total of the facility up to USD15.0 million.
The additional funds will be specifically used to begin de-watering the initial open pit, acquire land around the current mine site and finalise due diligence in preparation of the full drawdown of the separate, main facility from Taurus, it said.
That bridging facility is in place to cover the company's costs until Hummingbird can drawdown the larger, previously agreed USD75.0 million facility from Taurus which will be used to construct the project.
"The extension of the bridge facility allows Hummingbird to maintain its schedule as we conclude all the necessary technical, financial and legal due diligence prior to first draw on the main facility," said Chief Executive Dan Betts.
"We have recently completed the plant earthworks which consisted of the excavation, landscaping and compaction of over 80,000 cubic meters of earth, and we continue to believe that the development of Yanfolila during the downturn will set Hummingbird apart as a cash-generative miner offering investors leveraged exposure into the gold space," he added.
Hummingbird shares were trading up 2.2% to 23.25 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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