Hummingbird Resources PLC Debt Facility with Coris Bank International (1294C)
April 11 2017 - 1:01AM
UK Regulatory
TIDMHUM
RNS Number : 1294C
Hummingbird Resources PLC
11 April 2017
Ticker: HUM / Index: AIM / Sector: Mining
11 April 2017
Hummingbird Resources plc
("Hummingbird Resources" or the "Company")
Debt Facility with Coris Bank International
Hummingbird Resources (AIM: HUM), is pleased to announce that it
has materially improved the terms of its senior secured term debt
facility, (the "Senior Secured Term Facility"), following an
agreement with Coris Bank International Group ("Coris Bank
International") one of the largest and fastest growing banks in
West Africa. The new facility will be used to fund the ongoing
construction of the Yanfolila Gold Mine in Mali ("Yanfolila") that
is on budget and scheduled for first gold pour by the end of
2017.
Highlights:
-- Up to US$60 million Senior Secured Term Facility to be drawn in instalments as required
-- Four-year term, 9% interest rate, 12-month capital repayment deferral
-- No royalty or hedging required
-- Initial US$25 million being drawn immediately
-- Reduces cost of debt and maintains flexibility for growth and development
-- US$25 million Bridge loan facility with Taurus Mining Finance
Fund ("Taurus") has been repaid and the mandate for further finance
has been terminated
Dan Betts, CEO of Hummingbird Resources, commented:
"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."
Further Information
The Company's subsidiary Société Des Mines De Komana SA (the
"Mining Company") has entered into a loan agreement with Coris Bank
International for CFA37 billion (approximately US$60 million) on a
four-year term at a fixed interest rate of nine percent with a
12-month deferral of capital payment. Interest will be payable
during the 12-month deferral period.
The first draw down of CFA15.5 billion (approximately US$25
million) is expected to be completed shortly. The balance of
CFA21.5 billion (approximately US$35 million) is expected to be
drawn over the next five months. Early repayment of the loan is
subject to a 50% interest penalty.
About Coris Bank International
Coris Bank International was founded in 2008, in Burkina Faso,
and is focussed on financing West African focussed businesses.
Coris Bank International, with a balance sheet of circa US$1.5
billion, is currently the first bank in Burkina Faso and is present
in six West African countries including Cote d'Ivoire, Mali, Togo,
Senegal and Benin. Coris Bank International is one of the largest
and fastest growing banks in West Africa. For further information
on Coris Bank International can be found on its website:
http://www.coris-bank.com/.
**ENDS**
For further information, please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts Hummingbird Resources Tel: +44 (0) 20
Thomas Hill plc 3416 3560
Robert Monro
James Spinney Strand Hanson Limited Tel: +44 (0) 20
Ritchie Balmer Nominated & Financial 7409 3494
James Bellman Adviser
Jon Belliss Beaufort Securities Tel: +44 (0) 20
Limited 7382 8300
Broker
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Susie Geliher Ltd 7236 1177
Financial PR/IR
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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 Gold Project in Liberia. It is
currently building Yanfolila targeting first production by end of
2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total
Resources of 1.8Moz of gold and an additional 390,700oz of
non-compliant exploration potential. The high grade gold project
has low operating costs of US$695/oz AISC with 132,000oz of first
full year's production.
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 4,000km(2) highly
prospective exploration ground in Mali and Liberia and is
constantly evaluating new quality assets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAFLEFFFXEAF
(END) Dow Jones Newswires
April 11, 2017 02:01 ET (06:01 GMT)
Hummingbird Resources (LSE:HUM)
Historical Stock Chart
From Apr 2024 to May 2024
Hummingbird Resources (LSE:HUM)
Historical Stock Chart
From May 2023 to May 2024