REG - Hummingbird Res. - Debt Facility with Coris Bank International <Origin Href="QuoteRef">HUMR.L</Origin>

Hummingbird ResourcesAnnouncement

11/04/2017 07:07

RNS Number : 1294C
Hummingbird Resources PLC
11 April 2017
Ticker: HUM / Index: AIM / Sector: Mining
11 April 2017
Hummingbird Resources plc 
("Hummingbird Resources" or the "Company") 
Debt Facility with Coris Bank International
Hummingbird Resources (AIM: HUM), is pleased to announce that it has materially improved the terms of its senior secured term debt facility, (the "Senior Secured Term Facility"), following an agreement with Coris Bank International Group ("Coris Bank International") one of the largest and fastest growing banks in West Africa. The new facility will be used to fund the ongoing construction of the Yanfolila Gold Mine in Mali ("Yanfolila") that is on budget and scheduled for first gold pour by the end of 2017.
Highlights:
 Up to US$60 million Senior Secured Term Facility to be drawn in instalments as required 
 Four-year term, 9% interest rate, 12-month capital repayment deferral
 No royalty or hedging required
 Initial US$25 million being drawn immediately 
 Reduces cost of debt and maintains flexibility for growth and development
 US$25 million Bridge loan facility with Taurus Mining Finance Fund ("Taurus") has been repaid and the mandate for further finance has been terminated
Dan Betts, CEO of Hummingbird Resources, commented: 
"Coris Bank International is an established West African bank with an excellent track record and strong balance sheet. This debt agreement replaces the funding line previously anticipated with Taurus and provides the Company with sufficient working capital to complete the mine build at Yanfolila at a lower cost and without any royalty commitment. This will result in a material saving for Hummingbird over the life of the mine.
"Importantly the terms of the loan with Coris Bank International are more flexible than the previous arrangement and much better aligned with our strategy of growth. We look forward to working with Coris Bank International to bring Yanfolila into production and also to help us execute our strategy to become a multi-mine company."
Idrissa Nassa, President of Coris Bank International, said: 
"We are very pleased to be working with Hummingbird in the development of the Yanfolila Gold Mine. We have been to site and are pleased with the progress being made. Coris Bank International looks forward to completing the funding of Yanfolila and partnering with them as they bring the mine into production and look to expand in Africa. The aim of Coris Bank International is to be a leading bank in support of the economic growth in each our country markets." 
Further Information
The Company's subsidiary Socit Des Mines De Komana SA (the "Mining Company") has entered into a loan agreement with Coris Bank International for CFA37 billion (approximately US$60 million) on a four-year term at a fixed interest rate of nine percent with a 12-month deferral of capital payment. Interest will be payable during the 12-month deferral period. 
The first draw down of CFA15.5 billion (approximately US$25 million) is expected to be completed shortly. The balance of CFA21.5 billion (approximately US$35 million) is expected to be drawn over the next five months. Early repayment of the loan is subject to a 50% interest penalty.
About Coris Bank International
Coris Bank International was founded in 2008, in Burkina Faso, and is focussed on financing West African focussed businesses. Coris Bank International, with a balance sheet of circa US$1.5 billion, is currently the first bank in Burkina Faso and is present in six West African countries including Cote d'Ivoire, Mali, Togo, Senegal and Benin. Coris Bank International is one of the largest and fastest growing banks in West Africa. For further information on Coris Bank International can be found on its website: http://www.coris-bank.com/. 
**ENDS**
For further information, please visit www.hummingbirdresources.co.uk or contact:
Daniel Betts
Thomas Hill 
Robert Monro
Hummingbird Resources plc
Tel: +44 (0) 20 3416 3560



James Spinney
Ritchie Balmer
James Bellman
Strand Hanson Limited
Nominated & Financial Adviser
Tel: +44 (0) 20 7409 3494 



Jon Belliss
Beaufort Securities Limited
Broker
Tel: +44 (0) 20 7382 8300



Lottie Brocklehurst
Susie Geliher
St Brides Partners Ltd
Financial PR/IR
Tel: +44 (0) 20 7236 1177
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
About Hummingbird Resources Plc
Notes to Editors
Hummingbird Resources (AIM: HUM) is building a leading gold production, development and exploration company. The Company has two core gold projects, the near-term production Yanfolila Gold Project in Mali and the Dugbe Gold Project in Liberia. It is currently building Yanfolila targeting first production by end of 2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total Resources of 1.8Moz of gold and an additional 390,700oz of non-compliant exploration potential. The high grade gold project has low operating costs of US$695/oz AISC with 132,000oz of first full year's production. 
The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird with excellent development upside. An optimisation of the DFS is on-going whilst Yanfolila is brought to production in the near-term. Additionally, the Company has 4,000km2 highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets. 

This information is provided by RNS
The company news service from the London Stock Exchange
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