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Hummingbird funding for Yanfolila project

By BFN News | 07:44 AM | Tuesday 06 December, 2016

Hummingbird Resources has announced a US$45 million senior secured term facility and a US$10 million cost overrun facility with Taurus Funds Management Pty Limited for the Yanfolila gold project in Mali. Highlights: - US$45 million Senior Secured Term Facility * Four-year term, 7.75% interest rate from point of Project Completion (as defined below) and 9% interest rate from draw down until that time, interest paid semi-annually * Five semi-annual repayments to be made commencing 30 September 2018 and ending 30 September 2020 * 0.75% Gross Revenue Royalty capped at 2 million ounces ("Moz") of gold * No hedging requirement - US$10 million Cost Overrun Facility * 11% interest rate on drawn funds - Existing Bridge Loan Facility with Taurus (as announced on 11 August 2014) increased to US$25 million from US$15 million and extended to 8 April 2017 * Extension allows for documentation to be completed on the Facility * Bridge Loan expected to be refinanced by the Senior Secured Term Facility - Total Project Capex for Yanfolila is US$88 million which leaves the Project fully funded into positive cash flow with US$71 million of equity raised earlier this year combined with this Facility - On budget and schedule for first gold pour from Yanfolila by the end of 2017, targeting production of 132,000 oz in the first year Chief executive Dan Betts said: "I am absolutely delighted after all the hard work by both parties to have reached this milestone. "Following successful equity raisings totalling US$71 million earlier this year, I am happy to report that construction is now well under way with over 20% of the Project capex committed. "We are very pleased with the progress made to date on site and securing this additional debt facility sees the final corporate hurdle overcome in order to expedite the construction process ahead of our initial gold pour, targeted by the end of 2017. "With the significantly lower debt gearing on the Project we are happy that it now satisfies Taurus' requirements. Taurus has completed all technical due diligence and the extension of the Bridge Facility by a further US$10 million is representative of the commitment to Yanfolila. "Importantly there are no significant conditions precedent required to refinance the Bridge Facility into the first draw of the Term Facility. It is exciting to go into 2017 with a fantastic team in place and a fully funded, high margin gold project already well into the construction phase. "I would like to thank all the Hummingbird and Taurus staff for their hard work in getting to this momentous point for the company." Story provided by

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