LONDON – Hummingbird Resources PLC (AIM: HUM), a gold producer, has announced the refinancing of loans for its subsidiary in Mali, Société des Mines de Komana (SMK), with a new loan agreement worth approximately US$35.6 million. The contract, due on December 31, 2025, bears an interest rate of 9% per annum and is unsecured, but will eventually benefit from an existing security granted to Coris Bank International, a financial institution in West Africa.
This financial move follows the company’s announcement on December 24, 2024 regarding discussions on short-term financial support with Nioko Resources Corporation. The refinancing is seen as a key step to alleviate the immediate financial pressures facing Hummingbird and to support the company’s goal of achieving self-sustaining cash flows from its operations.
Hummingbird’s independent directors, after consultation with the company’s appointed adviser, Strand Hanson Limited, consider that the terms of the Loan Agreement are fair and reasonable to the company’s shareholders. Geoff Eyre, Interim CEO of Hummingbird, expressed that the engagement with Coris demonstrates their support during a challenging period for the company.
The loan is structured to be repayable from the proceeds of any third party financing, other than the Coris group or suppliers, following Nioko’s recommended cash offer announced on 16 December 2024, which has become or is declared unconditional.
Hummingbird Resources, a member of the World Gold Council and a founding member of Single Mine Origin, operates the Yanfolila gold mine in Mali and the Kouroussa gold mine in Guinea. The company also has a controlling interest in the Dugbe Gold project in Liberia, which is being developed by joint venture partners Pasofino Gold Limited.
This financial update is based on a press release and reflects the company’s ongoing efforts to strengthen its financial position and ensure the continuity of its mining operations in West Africa.
This article was generated with the support of artificial intelligence and reviewed by an editor. See our T&C for more information.
