Extractive Industries

Hummingbird completes $25m refinancing

Hummingbird Resources plc this week completed the US$25 million strategic refinancing of a portion of its existing loan facilities with principal financing partner Coris Bank International.

Support: Coris is instrumental in working through recent challenges (Pixabay)

KOUROUSSA

The company said that the 24-month loan, with an annual 12% interest, would meet its existing loan obligations due in Q2 2024, providing a two-year deferment of “specific facilities” held with Coris Bank.

Hummingbird is targeting commercial production later this quarter at Guinea gold project of Kouroussa, where work halted earlier this year over contractual issues.

Coris Bank is controlled by the same principal as the company’s largest shareholder Nioko Resources Corporation which as at 14 August holds 41.87% of Hummingbird.

“The refinancing with Coris Bank is a significant step in enhancing Hummingbird’s financial resilience,” added chief executive Dan Betts.

“We fully appreciate the ongoing support and constructive relationship with Coris, which has been instrumental in working through recent challenges and in the development of Hummingbird over the last several years.

“This move not only reduces near-term balance sheet constraints but also helps position us to navigate the current operating environment as we finalise the ramp-up at Kouroussa and target commercial production later this quarter.”

The refinancing was announced on 19 August.

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