Gold mining firm secures $55m debt facility from investors
BIRMINGHAM-registered gold exploration business, Hummingbird Resources has secured a $55m safety net from investors to enable its new gold mine project to continue.
The firm has secured a $45m Senior Secured Term Facility and a $10m Cost Overrun Facility with Taurus Funds Management – through its Taurus Mining Finance Fund and Taurus Mining Finance Annex Fund – for its Yanfolila gold project in Mali.
Dan Betts, CEO of Hummingbird Resources, said: “I am absolutely delighted after all the hard work by both parties to have reached this milestone.
“Following successful equity raisings totalling $71m earlier this year, I am happy to report that construction is now well under way with over 20% of the project capex (capital expenditure) committed.
“We are very pleased with the progress made to date on site and securing this additional debt facility sees the final corporate hurdle overcome in order to expedite the construction process ahead of our initial gold pour, targeted by the end of 2017.”
He said that with the significantly lower debt gearing on the project, Hummingbird was happy the scheme now satisfied Taurus’ requirements.
“Taurus has completed all technical due diligence and the extension of the bridge facility by a further $10m is representative of the commitment to Yanfolila,” he added.
“Importantly there are no significant conditions precedent required to refinance the bridge facility into the first draw of the term facility. It is exciting to go into 2017 with a fantastic team in place and a fully funded, high margin gold project already well into the construction phase.”
Michael Davies, Executive Director of Taurus, said the funder had completed an extremely rigorous due diligence process on the Yanfolila gold project.
“We are pleased to sign the mandate for the debt facility with Hummingbird. We continue to work closely with the company as they develop and commission the Project and look forward to a long and fruitful relationship.”
