US$5M Bridge Extension & Earthworks Completed

RNS Number : 5117X

Hummingbird Resources PLC

01 September 2015

 

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

1 September 2015

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

 

 Taurus advance US$5 million debt and Earthworks completed at Yanfolila Gold Project

Hummingbird Resources plc (AIM: HUM), the West African gold company, is pleased to announce Taurus Funds Management has extended the US$10 million bridge facility by a further US$5 million for the on-going development work at its flagship 1.8Moz Yanfolila Gold Project in Mali ('Yanfolila').  Additionally, plant earthworks are now complete ahead of commencing full-scale construction with its first gold pour targeted in 2016. 

Highlights

·     Taurus has extended the bridge facility by US$5 million - bridge facility now totals US$15 million

·     Use of proceeds expected to include:

o  Commencement of initial pit dewatering

o  Land acquisition around mine site

o  Finalisation of due diligence in preparation for full draw down

·     Plant earthworks at Yanfolila successfully completed

Dan Betts, CEO of Hummingbird Resources, said: 

"The extension of the bridge facility allows Hummingbird to maintain its schedule as we conclude all the necessary technical, financial and legal due diligence prior to first draw on the main facility. This extension demonstrates both Taurus' continued commitment to the development of the Yanfolila Gold Project, and their belief in the robust nature of the project at a time when the gold market appears to be suffering in confidence.  Hummingbird is delighted to be working with such a supportive partner to develop this project. 

"We have recently completed the plant earthworks which consisted of the excavation, landscaping and compaction of over 80,000 cubic meters of earth and we continue to believe that the development of Yanfolila during the downturn will set Hummingbird apart as a cash generative miner offering investors leveraged exposure into the gold space."

Nick Farr-Jones, Director of Taurus Funds Management, said:

"Taurus Funds Management is delighted to extend the bridge facility to Hummingbird in order to maintain the project schedule as the final conditions precedent for the main facility are completed."

Further Information

Yanfolila Update

Earthworks

In June 2015, the Company commenced initial earthworks consisting of the excavation, placement, and compaction of fill materials of over 80,000 cubic metres.  Earthworks are now complete, consisting of constructing the process plant terrace; plant infrastructure terrace; including reagent storage and handling; change house and security facility areas; power plant terrace; in plant roads; and storm event pond.  

The objective of this work, was to complete the preparation of level compacted areas at the Yanfolila plant site for use by the civil contractor to place structural concrete equipment foundations and slabs and to allow the overall construction schedule to be maintained.

Debt Agreement

On 11th August 2014 Hummingbird entered into a Mandate Letter and Bridge Loan Agreement with Taurus Mining Finance Fund LP, and subsequently drew down the full US$10 million available at that time under the Bridge Loan Agreement.  The Mandate Letter set out the key terms of the refinancing mandate for a US$75 million facility to repay amounts due under the Bridge Loan Agreement and fund the construction of the Yanfolila Project.  The Company has now successfully extended this Bridge Loan Agreement by a further US$5 million to a total of US$15 million. 

The proceeds of this will be used to continue moving the project towards production and include; initial in pit dewatering, further land acquisition across the mine site and finalisation of due diligence in preparation of full draw down. 

Hummingbird is currently finalising the documentation with Taurus for the re-financing of the bridge loan and initial draw down of the US$75m facility in order to commence full construction now that plant earthworks are completed. 

**ENDS**

Enquiries:

Daniel Betts Thomas Hill Robert Monro	Hummingbird Resources plc	Tel: [phone]
Stewart Dickson  Jeremy Stephenson	Cantor Fitzgerald Europe Nominated Adviser and Joint Broker	Tel: [phone]
Jon Belliss	Beaufort Securities Limited Joint Broker	Tel: [phone]
Lottie Brocklehurst Felicity Winkles Hugo de Salis	St Brides Partners Ltd Financial PR/IR	Tel: [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 Gold 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 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 US$75 million debt facility has been agreed with Taurus Mining and mine construction is now underway with the aim of commencing production in 2016.

The 4.2Moz Dugbe Gold 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

 

END

 

 

MSCUWUSRVWAWUAR