Hummingbird Resources PLC (LON:HUM) has sealed a US$60mln debt agreement on better than anticipated terms that will fund the build of its Yanfolila gold mine in Mali.
The facility is with Coris Bank, one of the largest and fastest growing lenders in West Africa. Hummingbird had been in negotiations with the Taurus Mining Finance Fund, which provided a US$25mln bridge loan to begin the development of Yanfolila, which is scheduled to pour its first gold by the end of year.
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The company has borrowed with Coris over four years at an interest rate of 9% with a 12-month capital deferral.
Crucially, there is no royalty or hedging involved and the company will draw down US$25mln immediately.
Hummingbird said the Coris agreement reduces the cost of the debt and “maintains flexibility” for growth and development.
"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,” said chief executive Dan Betts.
“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."