Hummingbird Resources plc has agreed to refinance a portion, totalling US$35 million, of its existing Coris Bank group loan and secured $20m new loans for its West African operations.
SUPPORT
The refinancing of existing Coris Bank loans will see loan repayments deferred from Q3 2023 to full year 2024.
Funds will provide additional cash flow flexibility as the Kouroussa project in Guinea progresses towards a state of steady production.
The additional $20m will help ongoing development of underground mining operations at Yanfolila in Mali.
Coris Bank is controlled by the same principal as the company’s 26.1% shareholder, CIG SA.
“We are pleased to have agreed a refinancing package with our financing partner Coris Bank, who remain committed supporters to Hummingbird’s growth platform,” said chief executive officer Dan Betts.
“This package will provide additional flexibility in 2023 to allow Kouroussa to reach steady state production and provide additional capital support for the group.”
News of the refinancing comes as Hummingbird published its interim results showing an increase in revenue to $4.6m (H1 2022: $4.1m).
Completion of the Kouroussa gold mine and plant construction resulted in a rise in capital expenditure to $41.5m ($31.9m).
Group sales totalled $98.6m ($66.3m) from 51,149 oz gold sold, while the company held net debt of $122.8m.
ESGs
During H1 2023, Hummingbird completed ahead of schedule resettlement of 40 families in the Sanioumale East (SE) village at Yanfolila, under the guidance of West African specialist consultants Environmental and Social Development Company.
Community livelihood initiatives and projects advanced at Yanfolila and Kouroussa including, among others, local community market gardens; water infrastructure development programmes; and local reforestation strategy initiatives.
The company also increased healthcare and first aid training initiatives in Kouroussa communities and schools.