In the news: Hummingbird Resources


In a huge step forward for the company, Hummingbird Resources*† (HUM LN) has announced a successful fund raising. This was done through a share placement that will allow it to commence the construction of its Yanfolila Project in Mali, one of the world’s highest-return undeveloped gold projects. We are, obviously, delighted, and believe that Dan Betts and his team have done an excellent job. RFC Ambrian acted as financial adviser and bookrunner in the transaction.
The company raised US$67m of equity. As our analysts Jim Taylor and Imogen Whiteside highlighted in their report (Hummingbird Resources — Raises US$67m for Yanfolila Development, 2 June 2016): “With the funds raised representing almost double the pre-deal market cap of the company, we consider the completion of this issue to be a highly significant achievement; this is the largest equity issue for an AIM-quoted gold company in four years. This serves as a testament to the high quality of the Yanfolila Project.”
With an expected build time of 12 months, the project could be in production by the end of 2017. Yanfolila is expected to generate over US$70m in free cashflow in its first full year of steady-state production. The project requires US$79.4m in capex, and Hummingbird plans to secure the remaining financing through a debt facility, for which it has already received a number of expressions of interest.
The share placement comes with an overallotment option to raise up to an additional £6.9m (US$10m). The transaction is still subject to shareholder approval at a 20 June meeting; it has already received the backing of close to 40% of shareholders. We will be speaking to investors over the coming few days, and please don’t hesitate to call if you would like to know more

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Australis acquisition of Passport Technology offers roadmap to generating...

Australis Capital (CSE: AUSA-OTC: AUSAF) CEO Cleve Tzung joined Steve Darling from Proactive to discuss the company’s recent transaction to acquire Passport Technology. Tzung discusses how the deal came about and what Passport immediately provides Australis. Tzung also told Proactive if they...

11 hours, 30 minutes ago