JOHANNESBURG (miningweekly.com) – Aim-listed Hummingbird Resources has raised some $3.8-million in a private placing with Fidelity Investments to unlock additional value at its Yanfolila gold project, in Mali.
The West Africa-focused gold company placed 11.1-million new ordinary shares in the company at 26p a share, the proceeds of which will provide Hummingbird the added flexibility of reviewing the potential development of additional near-mine resources as it ramps up to start production at its 2.2-million-ounce-a-year project by the end of 2017.
“Another avenue for considerable further upside is our Gonka deposit, 5 km south of the gold plant location, which is not currently included in the Yanfolila mine plan. Gonka's scoping study, released in February 2016, showed the potential for mining ore at greater than 4.5 g/t,” Hummingbird MD Dan Betts said in an update to the market.
“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.”
Cantor Metals and Mining commented that the raising brings another institution onto Hummingbird’s shareholder list and gives the company the opportunity to accelerate work on the Gonka deposit on the Yanfolila property.
“Following the fundraising in June and the top-up, the company is “cash rich” as it moves towards the build phase of the project, Cantor stated.