(Alliance News) - Shares in Hummingbird Resources PLC soared on Tuesday after securing USD100 million in funding from Coris Bank International, which will fully fund the Kouroussa gold mine in Guinea into production, along with internal cash flows.
Shares in the London-based but Africa-focused miner were 14% higher at 20.88 pence on Tuesday in London.
The mine is forecast to produce an average of between 120,000 and 140,000 ounces of gold for the first three years of production, then average 100,000 ounces over the seven-year minimum life of mine.
The funding from Burkina Faso-based Coris has been secured at a fixed interest rate of 8.5% over a four year tenure. As a result, construction is expected to start in the fourth quarter of 2021, with first gold pour scheduled for the end of 2023's second quarter.
The Kouroussa mine is currently undergoing a 24,000 metre infill drilling programme, of which 16,000 metres have been completed. The mine's current mineral resources stands at 1.18 million tonnes, of which 625,600 ounces is indicated and 552,700 ounces inferred.
"The completion of the financing and the imminent commencement of building Kouroussa marks the next phase of Hummingbird's strategy to become a multi-mine, multi-jurisdiction gold producer. Kouroussa is a low cost/high margin project which will more than double Hummingbird's gold production, substantially improve future cash flows and generate returns for all our stakeholders. With one of the highest IRRs for a gold project in West Africa, and material upside to extend LOM through further exploration within our licences area yet to be fully explored, Kouroussa provides a strong platform for our next phase of growth," said Chief Executive Officer Dan Betts.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Hummingbird (HUM)