Hummingbird Resources PLC (LON:HUM) has reached another milestone - appointing a mining contractor for its Yanfolila gold project in Mali where first gold is expected in 2017.
The group has hired African Mining Services (AMS), which is a subsidiary of ASX listed Ausdrill Limited.
Dan Betts, Hummingbird's chief executive, said the deal represented the single largest contract the company will award.
"AMS has an excellent reputation for high quality work with an exemplary health and safety record. The team also boasts over 25 years' experience operating in West Africa."
Ron Sayers, managing director of Ausdrill, added: "We look forward to working with Hummingbird to achieve its goal of developing the Yanfolila Gold Project, and running it as an efficient, low cost, high grade open pit mining operation.
"Ausdrill's 25 years' experience working in the West African gold sector means we have the track record and know-how to ensure the delivery of a safe and profitable mining operation."
Earlier this month, the firm secured US$55mln of debt funding required to complete Yanfolila.
The money is being provided in two tranches by Tarsus Mining Finance Fund, which specialises in bankrolling such development projects.
A total of US$45mln will come in the form of a senior secured facility paying a 9% coupon from draw-down and 7.75% after the work is complete.
There’ also a US$10mln overrun facility with an interest rate of 11% on funds borrowed.
Taurus has agreed to increase a bridge loan facility, currently for US$15mln, to US$25mln, which will remain in place until early April.
The mine is expected to churn out 132,000 ounces of the yellow metal in the first 12 months and construction began in October.