(Alliance News) - Shares in Hummingbird Resources PLC rose on Friday, after the company said operations had resumed at its Guinea gold mine following a two-month strike by its primary contractor.
Hummingbird is a gold miner with operations in Mali, Guinea and Liberia. Shares in the company were up 12% at 10.55 pence each in London on Friday morning.
Hummingbird said that its primary contractor Corica Mining Services has resumed operations at the company's Kouroussa gold mine in Guinea.
Corica suspended its activities at Kouroussa in March due to unspecified "contractual disputes". As a result, only 5,868 ounces of gold were produced in the quarter ended March 31, well below the run-rate Hummingbird anticipated at the mine.
An agreed operational plan for Kouroussa is now being implemented by Corica, Hummingbird said, with a full ramp-up of operations expected by the beginning of the third quarter.
The plan also outlined a framework for resolving the key disputes which led to the initial suspension of activities, Hummingbird added.
In addition, CIG SA, the company's largest shareholder, has agreed to provide Hummingbird with a USD10 million short term loan "to facilitate a smooth transition back to full operations by Corica".
The unsecured loan will be provided in tranches and will accrue interest at a rate of 14% per annum.
Chief Executive Officer Dan Betts said: "The agreement to remobilise Corica at Kouroussa demonstrates a commitment from both parties in finding a practical solution to the ongoing disputes. I am hopeful that this provides the framework for constructive discussions to resolve and re-base our relationship with Corica."
By Hugh Cameron, Alliance News reporter
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Hummingbird Resources (HUM)
