Private Placement to Raise US$4 million

RNS Number : 9979G

Hummingbird Resources PLC

12 August 2016

 

NOT FOR DISTRIBUTION OR DISSEMINATION INTO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

12 August 2016

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

Hummingbird Resources plc ("Hummingbird Resources" or the "Company")

Private Placement to Raise US$4 million

Hummingbird Resources plc (AIM: HUM), the West African gold company, is pleased to announce it has raised approximately US$3.8 million in a private placing with Fidelity Investments through the placing of 11,100,000 new ordinary shares in the Company (the "Placing Shares") at 26 pence per share ("the Placing"). Hummingbird is currently developing its 2.2Moz Yanfolila Gold Project in Mali ("Yanfolila") to production targeted by the end of 2017.

Dan Betts, Managing Director of Hummingbird Resources, said: 

"The additional funds raised through this placing, at a premium of 18% to our recent raising in June, give us the optionality to unlock additional value at Yanfolila with added flexibility to look at developing additional near mine resources whilst we target production next year.

"Another avenue for considerable further upside is our Gonka deposit, 5km 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 4.5g/t.  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."

Application for the admission of the Placing Shares to trading on AIM has been made and admission is expected on 15 August 2016. Following the Placing Hummingbird will have a total of 343,241,250 shares in issue.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

**ENDS**

For further information please visit the Hummingbird website www.hummingbirdresources.co.uk or contact:

Daniel Betts Thomas Hill Robert Monro	Hummingbird Resources plc	Tel: [phone]
Charlie Cryer Stefan Murphy Jonathan Stephens Oliver Morse	RFC Ambrian Ltd Nominated Adviser and Joint Broker	Tel: [phone]
Jon Belliss	Beaufort Securities Limited Joint Broker	Tel: [phone]
Lottie Brocklehurst Susie Geliher Hugo de Salis	St Brides Partners Ltd Financial PR/IR	Tel: [phone]

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.  Its current focus is on bringing Yanfolila, 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 the potential to turn a profit in a varying gold price environment and will allow for quick returns with low operating costs. 

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 4,000km² highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets.

 

END

 

 

ROIBFLLFQVFXBBZ