Hummingbird Resources plc has secured a binding agreement with its major investors on a new loan extension.
SUPPORT
The transaction is with CIG SA and Nioko Resources Corporation regarding the new CIG loan.
Shareholders voted in favour of converting the CIG US$30 million loan, dated 6 November, into new ordinary shares in a debt-to-equity conversion.
The first stage converts $4.55m of the $30m into 130,958,159 new ordinary Hummingbird shares at a conversion price of 2.6777 pence per share.
The maturity date of the balance of the new CIG loan is also extended to 28 February 2025.
Hummingbird said it was working with Nioko on additional short-term financial support.
Nioko announced on 16 December a firm intention to make a cash offer for the entire issued and to be issued share capital of Hummingbird.
The investor will own approximately 49.9% of the enlarged share capital.
On control of Hummingbird’s gold assets in Mali, Guinea and Liberia, Nioko will hold 71.8%.
Following admission of the stage I conversion shares, the company’s issued share capital will consist of 942,267,149 ordinary shares of one penny each, with voting rights.
Hummingbird holds no shares in treasury.