12th Aug 2016 06:37
LONDON (Alliance News) - Hummingbird Resources PLC on Friday said it has raised USD3.8 million after conducting a share placing priced at a premium to the huge equity raise conducted last month.
The company is developing the Yanfolia gold project in Mali in an attempt to have production up and running by the end of 2017 and in June the miner raised USD49.5 million through a large share placing priced at 22.0 pence per share.
On Friday, Hummingbird said it has raised a further USD3.8 million by placing 11.1 million new shares to Fidelity Investments, priced at 26.0 pence per share.
On Thursday, Hummingbird shares closed at 25.62 pence.
"The additional funds raised through this placing, at a premium of 18% to our recent raising in June, give us the optionality to unlock additional value at Yanfolila with added flexibility to look at developing additional near mine resources whilst we target production next year," said Managing Director Dan Betts.
Betts said another avenue for considerable further upside is the Gonka deposit at the project, where Hummingbird believes the ore found during the scoping study that was graded over 4.5 grammes of gold per tonne could be upgraded to the reserves category, adding more ounces through drilling that requires "very limited capital".
By Joshua Warner; [email protected]; @JoshAlliance
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