USD8.9M Result of Placing

RNS Number : 0129I

Hummingbird Resources PLC

20 March 2015

 



Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

20 March 2015

Hummingbird Resources plc ("Hummingbird Resources" or the "Company")

Result of Placing

Further to the announcement dated 19 March 2015, Hummingbird Resources plc (AIM: HUM), the West African gold exploration and development company, is pleased to announce the successful placing of approximately US$3.9 million (£2.6 million, $1.49:£1), before expenses, with existing and new institutional investors at 30 pence per Placing Unit (the "Issue Price") (the "Placing"). Each Placing Unit consists of one new ordinary share ("New Ordinary Share") of 1 pence each in the capital of the Company and a half of one warrant to subscribe for a New Ordinary Shares ("Warrant"). The Company has therefore secured a combined funding package of US$8.9 million (£5.9 million), through:

·    a placing of Placing Units with existing and new institutional investors at the Issue Price to raise approximately US$3.9 million (£2.6 million); and

·    the entry into a binding agreement with BCM International Ltd ("BCM") for BCM to subscribe for up to US$5 million (£3.4 million, fixed at US$1.48:£1) of New Ordinary Shares at the Issue Price once definitive project contracts are in place (the "BCM Subscription").  

In addition, to allow existing shareholders to participate, the Company intends to conduct an open offer to shareholders of up to 6,712,284 million New Ordinary Shares at the Issue Price, each also offered with half a Warrant, to raise up to US$3 million (£2.0 million) (the "Open Offer"). No application will be made to admit the Warrants to trading and they will be unlisted. Full details will be set out in the Circular.

On account of the Company's current shareholder authorities, the Placing will take place in two tranches: the first tranche of the Placing will be of 3,638,292 Placing Units ("First Tranche Placing Units") and the second tranche of the Placing will be of 4,963,498 Placing Units ("Second Tranche Placing Units") and conditional inter alia on the approval of new shareholder authorities at a general meeting of the Company to be held at 11 a.m. on 15 April 2015 (the "General Meeting") (the "Resolutions").

A circular (the "Circular"), containing information in relation to the Placing and the Open Offer and convening the General Meeting, is expected to be sent to shareholders on or around 24 March 2015. The Circular will be available on the Company's website in due course.

The Company will apply for admission to trading on AIM ("Admission") and it is expected that Admission of the New Ordinary Shares within the First Tranche Placing Units will occur on or around 25 March 2015 and, subject to the approval of the Resolutions at the General Meeting, Admission of the New Ordinary Shares within the Second Tranche Placing Units is expected to occur on or around 16 April 2015.

Highlights

·    The proceeds will be used in conjunction with the proposed US$75 million (£50.3 million) Taurus Funds Management ("Taurus") facility to bring Yanfolila into production, which is expected in H1 2016

·    BCM taking up to US$5m in shares in lieu of cash payment shows strong belief in the Project

·    Due diligence by Taurus for the full draw-down is progressing well with completion expected in H1 2015

·    Construction targeted to commence shortly

Dan Betts, CEO of Hummingbird Resources, said: "This funding solution in tandem with our proposed Taurus debt facility of US$75 million, will see us funded to start construction at Yanfolila. We aim to deliver our maiden gold pour at Yanfolila in 2016.

"The results of the recent Optimisation Study at Yanfolila highlight a low-cost, low technical risk and quick route to gold production. The study shows a Project that will deliver 100,000 ounces of gold production in its first year with 79,000 ounces per year production over its mine life at an all in cash cost of US$733 per ounce. With the focus predominantly on oxide ore, which recently increased to 650,000 ounces, we can create a high margin, high return operation. Additionally, there are multiple options to improve the project economics significantly, and importantly we have the team with the operational experience to achieve this.

"Construction of the mine is targeted to commence in the coming weeks and we look forward to delivering our first mine and generating significant free cash flows to our shareholders as we build a leading next generation gold company in Africa.

"Additionally, the Dugbe Project, in Liberia, remains integral to the Company as we continue to do work to improve the existing technical studies. The Project, with 4.2Moz gold and a 20 year mine life, has significant scale."

Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM which is expected on or around 25 March 2015 in relation to the First Tranche Placing Units and, subject to the approval of the Resolutions at the General Meeting, on or around 16 April 2015 in relation to the Second Tranche Placing Units. Following Admission, the Company will have a total of 93,445,057¹ ordinary shares in issue. The New Ordinary Shares will rank pari passu with the existing ordinary shares.

Following Admission and in accordance with the Financial Conduct Authority's Disclosure and Transparency Rules, the Company hereby announces that it will have 93,445,057¹ ordinary shares of £0.01 each in issue, each share carrying the right to one vote.

Following Admission, the above figure of 93,445,057¹ ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

¹ Excluding any New Ordinary Shares issued pursuant to the Open Offer

Enquiries:

Hummingbird Resources plc
Daniel Betts, Chief Executive Officer
Thomas Hill, Finance Director
Robert Monro, Head of Business Development	[phone]
Hannam & Partners (Advisory) LLP
Financial Adviser
Rupert Fane / Andrew Chubb	[phone]
Cantor Fitzgerald Europe
Nominated Adviser and Corporate Broker
Stewart Dickson / Jeremy Stephenson	[phone]
St Brides Partners
Financial PR
Lottie Brocklehurst/Felicity Winkles/Hugo de Salis	[phone]

Notes to Editors

About Hummingbird Resources Plc

Notes to Editors

Hummingbird Resources (AIM: HUM) is building a leading gold production, development and exploration company. The Company has two core gold projects, the near-term production Yanfolila project in Mali and the Dugbe development project in Liberia. Its current focus is on bringing Yanfolila, which has a 1.8Moz gold inventory, to production in H1 2016.  The high grade gold project has the potential to turn a profit in a varying gold price environment and will allow for quick returns with low operating costs. A mandate setting out the key terms of a proposed US$75 million debt facility has been agreed with Taurus Mining and initial mine construction is expected to commence in H1 2015.

The 4.2Moz Dugbe project in Liberia provides Hummingbird with excellent development upside. An optimisation of the DFS is on-going whilst Yanfolila is brought to production in the near-term. Additionally, the Company has 5,000km² highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets.

For more information, please visit www.hummingbirdresources.co.uk

 

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