Hummingbird Resources plc issued 863,079,491 new ordinary shares of nominal value £0.01 at 2.6777 pence per share to convert £23.1 million of loan facilities from its main creditor.
The conditional binding two-tranche subscription by CIG and Nioko Resources Corporation follows the proposed debt-to-equity conversion announced in early November.
Hummingbird faces a buyout and delisting after challenges at Yanfolila in southern Mali, equipment availability, working capital constraints and delays at Kouroussa in Guinea affected its near-term debt repayments.
On completion of the subscription, the subscriber will own 71.8% of Hummingbird, conditional on independent shareholder and regulatory approvals.
The company will also be released from its US$30 million liabilities under an existing loan agreement.