JOHANNESBURG (miningweekly.com) – Aim-listed Hummingbird Resources has secured a four-year $60-million senior secured term debt facility with West Africa-based Coris Bank International to fund the ongoing construction of the Yanfolila gold mine, in Mali.
The new debt agreement replaced the funding line previously anticipated with Taurus and provided the company with sufficient working capital to complete the mine build at Yanfolila at a lower cost and without any royalty commitment, said Hummingbird CEO Dan Betts.
"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,” he added, noting that the $25-million bridge loan facility with Taurus Mining Finance Fund has been repaid and the mandate for further finance terminated.
The lower-cost and zero royalty commitment will result in a material saving for Hummingbird over the life of the mine, which is still on budget and scheduled for first gold pour by the end of this year.
The new facility can be drawn on as required with a 9% fixed interest rate, 12-month capital repayment deferral.
An initial $25-million is being drawn immediately, with the balance expected to be drawn over the next five months.
“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,” said Coris Bank president Idrissa Nassa.
Coris Bank is based in Burkina Faso and is present in six West African countries – Burkina Faso, Côte d'Ivoire, Mali, Togo, Senegal and Benin.