Gold mining firm adds lustre with £3m fundraising
BIRMINGHAM-registered gold exploration group, Hummingbird Resources has raised almost £3m in a private placing agreement.
The company, currently developing a gold mine project in Yanfolila, Mali, said it had raised £2.93m ($3.8m) through the placing of 11,100,000 new shares with Fidelity Investments.
Dan Betts, managing director of Hummingbird Resources, said: “The additional funds raised through this placing, at a premium of 18% to our recent raising in June, gives 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.
“Another avenue for considerable further upside is our Gonka deposit, 5km south of the gold plant location, which is not currently included in the Yanfolila mine plan.”
He said Gonka’s Scoping Study, released in February 2016, showed the potential for mining high quality ore.
“Further infill drilling, if successful, could bring this into the Reserves category and potentially add material ounces to our production profile for very limited capital,” he added.
Yanfolila, which could yield 2.2m ounces of gold, is scheduled to begin the production of gold by the end of 2017.
An application to begin trading the new shares on AIM has been submitted and should clear ready for the start of business on Monday.
