REG - Hummingbird Res. - Financing Agreement & Related Party Transaction

Hummingbird ResourcesAnnouncement

15/01/2025 18:30

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RNS Number : 5043T  Hummingbird Resources PLC  15 January 2025

 

 

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

15 January 2025

Hummingbird Resources PLC

("Hummingbird", the "Group" or the "Company")

Financing Agreement & Related Party Transaction

Hummingbird (AIM: HUM) notes that, as referenced in the announcement on the 14
January 2025, to support the Company's financial obligations to pay the first
instalment to the Mali Government, the Company has entered into a US$5.0
million unsecured interest free 12-month loan facility with CIG SA with a
fixed US$2.8 million royalty payable between the period 1 March 2025 to 28
February 2026. The loan principal is repayable in 12 equal monthly instalments
commencing on 1 April 2025, with the royalty payments payable monthly in
arrears.

The Company maintains the right to repay the outstanding principal under the
facility agreement and remaining royalty obligations, in full, at any time.
Full repayment of both the facility agreement and any remaining royalty
obligation will be triggered on the earlier of 1 March 2026, and the
restructuring of the Group's debt. An arrangement fee of 1 per cent. of the
loan facility amount is payable on the final repayment date.

Geoff Eyre, Interim CEO of Hummingbird, commented:

"We are grateful for the continued support from CIG SA through this US$5.0
million unsecured, interest-free loan, which enables us to meet our financial
obligations following the signing of Mali Protocol. This agreement provides
flexibility, with the option to repay the loan and royalty obligations at any
time as we focus on long-term growth and stability."

Related Party Transaction

The Company entering into the facility agreement and royalty agreement with
CIG constitutes a related party transaction pursuant to the AIM Rules for
Companies. The independent directors of the Company, being those other
than Oumar Toguyeni and Geoff Eyre, having consulted with the Company's
Nominated Adviser, Strand Hanson Limited, consider the terms governing the
facility agreement and royalty agreement to be fair and reasonable insofar as
the Company's shareholders are concerned.

 

**ENDS**

This announcement contains inside information as stipulated under the Market
Abuse Regulation No. 596/2014 (incorporated into UK law by virtue of the
European Union (Withdrawal) Act 2018 as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019). Upon the publication of this
announcement via a regulatory information service, this inside information is
now considered to be in the public domain.

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing company, member of the World Gold Council
and founding member of Single Mine Origin (www.singlemineorigin.com). The
Company currently has two core gold projects, the operational Yanfolila Gold
Mine in Mali, and the Kouroussa Gold Mine in Guinea. Furthermore, the Company
has a controlling interest in the Dugbe Gold Project in Liberia that is being
developed by joint venture partners, Pasofino Gold Limited. The final
feasibility results on Dugbe showcase 2.76Moz in Reserves and strong economics
such as a 3.5-year capex payback period once in production, and a 14-year life
of mine at a low AISC profile. Our vision is to continue to grow our asset
base, producing profitable ounces, while central to all we do being our
Environmental, Social & Governance ("ESG") policies and practices.

For further information, please visit Hummingbirdresources.co.uk or contact:

 Geoff Eyre, CEO         Hummingbird Resources plc                                        Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Edward Montgomery, CD
 Callum Stewart          Stifel Nicolaus Europe                                           Tel: +44 (0) 20 7710 7600

 Varun Talwar            Joint Financial Adviser to Hummingbird
 James Spinney           Strand Hanson Limited                                            Tel: +44 (0) 20 7409 3494

 James Dance             Joint Financial Adviser & Nominated Adviser to Hummingbird

 Ritchie Balmer

 David Asquith
 Bobby Morse             Buchanan                                                         Tel: +44 (0) 20 7466 5000

 Oonagh Reidy            PR Adviser to Hummingbird                                        Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 George Pope

 

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