17th Jun 2015 08:16
LONDON (Alliance News) - Hummingbird Resources Ltd shares fell Wednesday morning after the gold explorer in West Africa raised about GBP3.5 million in a discounted share placing, money it will use to advance its Yanfolila gold project in Mali to near-term production.
The news of the placing came as Hummingbird said completed technical studies at Yanfolila had indicated a "significant potential" for improved economics of developing the project as an open-pit mining operation. It predicted significantly more recovered gold the from Komana East and West pits at the project due to improved pit designs and mine scheduling.
Hummingbird placed 10.6 million new shares at 33 pence each, with newly appointed joint broker Beaufort Securities acting as lead broker on the fundraising. The company's shares were down 7.2% at 34.80 pence Wednesday morning as the placing price set a new benchmark, making it one of the worst-performing stocks in the AIM All-Share index.
"Following the recent appointment of Beaufort Securities as Joint Broker we received strong demand particularly from the retail community and as such, we are delighted to have raised GBP3.5 million. Having bolstered our cash balance, increased our retail following and potential liquidity, we are now in an even stronger position to deliver our first gold pour at Yanfolila in 2016 where plant earthworks are already underway," Hummingbird Chief Executive Dan Betts said.
"Due to success of geotechnical and resource work since the optimisation study in March 2015 Hummingbird is now focused on an initial two pit mine plan at Komana East and West to simplify the mining process in early years of debt repayment with a further three pits (Sanioumale East and West and Guiren West) to be brought into the mine plan in due course, giving further upside, an extended life of mine and increased production and ounces," the company said.
By Steve McGrath; [email protected]; @stevemcgrath1
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