Hummingbird Resources plc has refinanced its loan agreement to US$35.6 million to support its subsidiary’s operations in southern Mali.
NEEDS
The unsecured amount plus accrued interest at 9%, from its largest shareholder Nioko Resources Corporation, is repayable on 31 December 2025.
The new arrangement follows Nioko’s mid-December buyout cash offer for the company.
Hummingbird shareholders have already voted in favour of converting the previous loan figure of $30m into new ordinary shares, in a debt-to-equity conversion.
Last week Hummingbird said that the Yanfolila gold mine would “struggle to break even for the foreseeable future”.
The project also needs “substantial” investment to replace its end of life mining fleet, for essential drilling to extend mine life, and meet its overdue creditor payments.
Interim chief executive Geoff Eyre said: “The refinancing of these loans is another critical step to enable the company to secure funding to alleviate Hummingbird’s immediate financial needs.
“The constructive engagement with Coris also demonstrates its commitment to supporting Hummingbird during this challenging period as the company works towards achieving self-sustaining cashflows from operations.”