LONDON - Hummingbird Resources PLC (AIM: HUM), a gold producing company, has announced the refinancing of loans for its Malian subsidiary, Société des Mines de Komana (SMK), with a new loan agreement valued at approximately US$35.6 million. The agreement, repayable on December 31, 2025, carries an interest rate of 9% per annum and is unsecured, but will eventually benefit from existing security granted to Coris Bank International, a financial institution in West Africa.
This financial move follows the company's December 24, 2024, announcement regarding short-term financial support discussions with Nioko Resources Corporation. The refinancing is seen as a crucial step to alleviate immediate financial pressures faced by Hummingbird and to support the company's objective of achieving self-sustaining cash flows from its operations.
The independent directors of Hummingbird, having consulted with the company's Nominated Adviser, Strand Hanson Limited, have deemed the terms of the Loan Agreement to be fair and reasonable for the company's shareholders. Geoff Eyre, Interim CEO of Hummingbird, expressed that the engagement with Coris demonstrates their support during a challenging period for the company.
The loan is structured to become repayable from the proceeds of any third-party financing, other than the Coris group or a supplier, following Nioko's recommended cash offer announced on December 16, 2024, that has become or been declared unconditional.
Hummingbird Resources, a member of the World Gold Council and a founding member of Single Mine Origin, operates the Yanfolila Gold Mine in Mali and the Kouroussa Gold Mine in Guinea. The company also holds a controlling interest in the Dugbe Gold Project in Liberia, which is being developed by joint venture partners Pasofino Gold Limited.
This financial update is based on a press release statement and reflects the company's ongoing efforts to strengthen its financial position and ensure the continuity of its mining operations in West Africa.
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