15th Apr 2015 15:16
LONDON (Alliance News) - Hummingbird Resources PLC Wednesday said it raised a total of USD9.5 million from its placing, subscription and open offer that was announced in March.
Hummingbird proposed on March 19 a funding package comprised of a placing to existing and new institutional investors for one share, plus half of a warrant to subscribe for a another share, at 30.0 pence per placing share with an aim of raising between GBP2.0 million to GBP3.4 million. Alongside this was an open offer of up to 6.7 million shares at the same price to raise up to GBP2 million.
The share placing and offer followed an agreement signed in March with BCM International Ltd, a mining and civil earthworks contractor, which agreed to subscribe up to GBP3.4 million of new shares in the company once definitive project contracts are in place for the company's Yanfolia gold project in Mali.
On Wednesday, Hummingbird said it has raised a total of USD9.5 million from the funding package, of which USD8.9 million was raised from the placing and the BCM deal, with the remaining balance coming from the open offer. Hummingbird received valid acceptances for over 1.3 million shares in the open offer, from the 6.7 million shares made available.
The company said some directors participated in the open offer, but Hummingbird did not give any details of whom participated or on what scale.
The funds will be used to develop the 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 were up 3.0% late Wednesday afternoon to 30.90 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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