Hummingbird Resources, a UK-based mining company, has secured a $55m (£44.98m) refinancing package from Burkina Faso-based banking services company Coris Bank.
As part of the financing, Hummingbird has refinanced its existing $35m loan to secure additional cash flow to support the progression of the Kouroussa gold mine in Guinea towards production.
Furthermore, it has secured an additional $20m to increase capital support for the development of its mining operations at Yanfolila gold mine in Mali.
With the refinancing, the company has also revised its loan repayment schedule, which will start in the financial year 2024 (FY 2024) instead of the third quarter of this year.
It will have nearly $77m due in FY 2024, about $61m scheduled for FY 2025, and the remaining amount of nearly $15m will be payable by the end of FY 2028.
The Kouroussa mine achieved its first gold pour in June this year. The company also completed the first gold shipment of around 1,000oz.
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By GlobalData
Hummingbird now plans to increase the size and regularity of its gold pours and shipments through the fourth quarter of this year. It aims to achieve commercial production in FY 2024.
At its Yanfolila gold mine in Mali, Hummingbird achieved Komana East open pit in the second quarter of this year and underground mining at Komana East is also claimed to be progressing.
Yanfolila’s production guidance for the financial year 2023 is 80,000–90,000oz.
The gold miner also posted its H1 2023 results, registering a pre-tax profit of $4.1m in the six months ending 30 June 2023 as against a loss of $23.9m last year.
It generated sales of $98.6m for the period, up from $66.3m in H1 2022.
Hummingbird CEO Dan Betts said: “At Kouroussa, H1 2023 saw the construction of the project completed on time and on budget, and conduct its first gold pour, marking a material milestone for the company to become a multi-asset, multi-jurisdictional gold producer.
“The key focus for our Kouroussa operations team is on reaching steady state production and setting the mine up for full commercial production for FY 2024 and beyond.
“Further, we are pleased to have agreed a refinancing package with our financing partner Coris Bank, who remain committed supporters to Hummingbird’s growth platform.
“This package will provide additional flexibility in 2023 to allow Kouroussa to reach steady state production and provide additional capital support for the Group.”
