19th Mar 2015 18:03
LONDON (Alliance News) - Hummingbird Resources PLC Thursday said it has identified and proposed a funding package in order to progress the company's Yanfolia gold project in Mali.
The miner has proposed a placing to existing and new institutional investors for one share and half of a warrant to subscribe for a new share in the company at 30.0 pence per placing share to raise between GBP2 million to GBP3.4 million.
The company has also entered into a binding agreement with BCM International Ltd, a mining and civil earthworks contractor, which has agreed to subscribe up to GBP3.4 million of new shares in the company once definitive project contracts are in place for Yanfolia, said Hummingbird in a statement.
In addition, Hummingbird said it will allow existing shareholders to participate by conducting an open offer of up to 6.7 million shares at the same price as the placing to raise up to GBP2 million.
The funding package will be used to fast-track development of the company's Yanfolila gold project in Mali for the proposed initial production of 100,000 ounces in its first year, with the first gold pour targeted in the first half of 2016.
Hummingbird shares closed down 2.3% to 32.25 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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