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Hummingbird secures $75m financing for Yanfolila development

11th August 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Gold exploration and development company Hummingbird Resources has reached an agreement with Taurus Mining Finance Fund for a $75-million, two-phase debt facility that would enable the company to fund the construction of its Yanfolila project, in Mali.

"We acquired the Yanfolila project to provide us with a fast, simple and low-cost route to production.  Securing this financing package so quickly demonstrates the quality of this deal and opens the path to first gold production by the end of next year,” Hummingbird CEO Dan Betts said.

Taurus would provide Hummingbird with an initial $10-million bridging facility with an 18-month term, to cover front-end engineering and design, detailed engineering, drilling, associated optimisation studies and long-lead capital equipment.

On completion of the Yanfolila plant design and associated optimisation studies and satisfaction of certain conditions precedent, Taurus would then provide Hummingbird with $75-million under a five-year facility for the purpose of refinancing the bridging facility and financing the project development costs.

Repayment of the facility would start two years after drawdown.

Betts added that the cost of the debt was competitive, and that he was pleased that Hummingbird had secured a nondilutive means to finance the path to production.

“This is a major step towards first gold pour and positive cash flow,” he said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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