Hummingbird hits the gold standard with $60m funding deal
Birmingham-registered gold mining company, Hummingbird Resources, has strengthened its financial position with a new funding deal.
In an update to the markets, the company said it had materially improved the terms of its senior secured term debt facility following an agreement with Coris Bank International, one of the largest and fastest growing banking groups in West Africa.
The new facility will be used to fund the ongoing construction of the Yanfolila Gold Mine in Mali, which the company said remained on budget and scheduled for its first gold pour by the end of this year.
The new facility will allow Hummingbird to draw up to US$60m in instalments as required. It will operate over a four-year term at a 9% interest rate, with a 12-month capital repayment deferral. It also reduces the cost of debt and maintains flexibility for growth and development.
Hummingbird said it was drawing an immediate $25m to progress the Yanfolila operation.
The balance of $35m is expected to be drawn over the next five months. Early repayment of the loan is subject to a 50% interest penalty.
Hummingbird has repaid an earlier $25m bridge loan facility with Taurus Mining Finance Fund and the mandate for further finance from this source has been terminated.
Dan Betts, CEO of Hummingbird Resources, said: “Coris Bank International is an established West African bank with an excellent track record and strong balance sheet. This debt agreement replaces the funding line previously anticipated with Taurus and provides the company with sufficient working capital to complete the mine build at Yanfolila at a lower cost and without any royalty commitment. This will result in a material saving for Hummingbird over the life of the mine.
“Importantly the terms of the loan with Coris Bank International are more flexible than the previous arrangement and much better aligned with our strategy of growth. We look forward to working with Coris Bank International to bring Yanfolila into production and also to help us execute our strategy to become a multi-mine company.”
Idrissa Nassa, President of Coris Bank International, said: “We are very pleased to be working with Hummingbird in the development of the Yanfolila gold mine. We have been to site and are pleased with the progress being made.
“Coris Bank International looks forward to completing the funding of Yanfolila and partnering with them as they bring the mine into production and look to expand in Africa. The aim of Coris Bank International is to be a leading bank in support of the economic growth in each our country markets.”
