Yanfolila Funded with US$75m Debt Facility

RNS Number : 7088O

Hummingbird Resources PLC

11 August 2014

 



11 August 2014

Hummingbird Resources plc

("Hummingbird Resources" or the "Company") (AIM: HUM)

Yanfolila Funded with US$75m Debt Facility

Hummingbird Resources, the gold exploration and development company with assets in Mali and Liberia, announces that it has reached agreement with Taurus Mining Finance Fund ("Taurus") for a two phase debt facility that will enable Hummingbird Resources to fund the construction of the Yanfolila project. First gold production is targeted at Yanfolila by the end of 2015.

Highlights:

·    US$10m Bridge Facility to cover Front End Engineering and Design ("FEED"), detailed engineering, drilling, associated optimisation studies and long-lead capital equipment

·    US$75m refinancing package post Bridge Facility

·    Optimisation due for completion Q4 2014 and construction due to commence Q1 2015

·    Taurus is a well-established mining fund with extensive West African experience

Dan Betts, CEO of Hummingbird Resources, said:

"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. 

"The cost of this debt is competitive and I am very pleased Hummingbird has secured a non-dilutive means to finance the path to production.  This is a major step towards first gold pour and positive cash flow." 

Nick Farr-Jones, Director, Taurus Funds Management, said:

"Taurus Funds Management is delighted to be working with the Hummingbird team and associated with the development of the exciting Yanfolila gold project."

Terms of Bridge Facility & Refinancing Mandate

Hummingbird Resources through its wholly owned subsidiary, Trochilidae Resources Limited ("Trochilidae"), has today entered into a Mandate Letter and Bridge Facility Agreement with Taurus.  The Mandate Letter provides the terms of the Bridge Facility Agreement and also sets out the key terms of the tied refinancing mandate for US$75m.

Under the Bridge Facility Agreement, Taurus will provide an initial US$10m bridging facility with an 18 month term, available for drawdown upon finalisation of security documents and legal opinions.  These documents and opinions are well advanced and Hummingbird Resources expects to draw down funds imminently.   

 The key terms of the Bridge Facility Agreement are as follows:

·    18 month term funding of US$10m

·    Interest rate of 9% per annum paid semi annually

·    Arrangement fee of 1% of facility amount

·    Early repayment at option of the borrower

·    Mortgage over the shares of Glencar Mining Plc

On completion of the Yanfolila plant design and associated optimisation studies and satisfaction of certain conditions precedent, Taurus will provide Hummingbird Resources US$75m under a 5-year facility for the purpose of refinancing the Bridge Facility and financing the development costs for the Yanfolila gold project in Mali.  The Facility will have first ranking security over the Yanfolila gold project.   Repayment of the Facility will commence two years after drawdown.

Hummingbird Resources acquired the Yanfolila project from Gold Fields, along with its other assets in Mali, in July 2014 for a consideration of US$20m payable in Hummingbird Resources ordinary shares.  Yanfolila has a current mineral inventory of 1.8Moz of gold at 2.8g/t. Hummingbird Resources plans to create a low cost mining operation that yields strong cash flows early in the project life at Yanfolila.  The Company is currently undertaking detailed plant design work and optimisation of the Gold Fields mine plan in order to align the previous studies with its own strategy to focus on mining oxide and transitional material only in Phase 1 of operations.

ENDS

Enquiries:

Hummingbird Resources plc
Daniel Betts, Chief Executive Officer
Thomas Hill, Finance Director
Robert Monro, Head of Business Development	[phone]
Cantor Fitzgerald Europe
Nominated Adviser and Corporate Broker
Stewart Dickson / Jeremy Stephenson / Carrie Lun	[phone]
FTI Consulting LLP
Financial PR
Ben Brewerton / Oliver Winters / Sara Powell	[phone]

Notes to Editors

About Hummingbird Resources Plc

Founded in late 2005, Hummingbird Resources is a West African gold explorer and developer (AIM:HUM), which listed on AIM in December 2010 with a maiden N143-101 compliant Resource of 0.8Moz gold in Liberia. Since IPO the Company has significantly grown its initial resource to 4.2Moz at its Dugbe 1 Project in Liberia, West Africa.  With the recent acquisition of Gold Fields' gold assets in Mali, Hummingbird is now a multi-project, near-term producer with 6Moz of gold and 5,000 km² of exploration ground.

For more information, please visit www.hummingbirdresources.co.uk

About Taurus

Taurus Funds Management ('Taurus') is an independent, global fund manager whose clients include institutional and high net worth (wholesale) investors based in Sydney, Australia. Taurus specialises in investment products based on the mined commodities industry.  Its team of geologists, mining engineers, mining financiers, metallurgists and portfolio managers provide the skills and experience for successful investing. Taurus was founded in 2006 and its first private equity fund commenced in July 2007. Taurus' second private fund closed in June 2012. 

 

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