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(Alliance News) - Hummingbird Resources PLC said Tuesday it paid USD2.5 million to settle a claim by Taurus Funds Management Ltd after the termination of a project finance facility.
Meanwhile, Hummingbird confirmed its annual gold production target was in line with expectations after an "encouraging" third quarter.
In 2017, Hummingbird terminated a mandate with Taurus for the firm to arrange a project finance facility.
Hummingbird took the decision to end the mandate after having "lack of confidence in the necessary funding being made available by Taurus on a timely basis or on terms acceptable to Hummingbird." Subsequently, Hummingbird entered into a loan agreement with Coris Bank to provide the funding for the Yanfolila gold mining project in Mali.
In January 2018, however, Taurus filed a USD10 million claim for the lost facility and royalty fee.
"Whilst maintaining the position that no breach of the Mandate occurred, the board of Hummingbird has assessed settlement on a number of criteria that sought to limit shareholder risk," Hummingbird said in a statement.
In addition, Hummingbird reported third quarter 2019 gold production had been encouraging. Consequently, the firm remains "in line" to meet its 110,000 to 125,000 ounces of gold for the year.
Shares in Hummingbird were unchanged at 24.50 pence in London on Tuesday.
By Ahren Lester; ahrenlester@alliancenews.com
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