Hummingbird Resources PLC (LON:HUM), the West African gold company, has raised around US$3.8mln by placing shares at 26p a throw.
Shares in Hummingbird closed at 25.625p last night.
"The additional funds raised through this placing, at a premium of 18% to our recent raising in June, give us the optionality to unlock additional value at Yanfolila with added flexibility to look at developing additional near mine resources whilst we target production next year,” said Dan Betts, managing director of Hummingbird.
Yanfolila is Hummingbird’s 2.2mln ounce gold project in Mali.
"Another avenue for considerable further upside is our Gonka deposit, 5km south of the gold plant location, which is not currently included in the Yanfolila mine plan,” Betts continued.
“Gonka's scoping study, released in February 2016, showed the potential for mining ore at greater than 4.5g/t [grams per tonne]. Further in-fill drilling, if successful, could bring this into the Reserves category and potentially add material ounces to our production profile for very limited capital," he added.
In all, Hummingbird issued 11.1mln new shares.