(Alliance News) - Hummingbird Resources PLC welcomed on Tuesday a USD15 million injection from African investment company CIG SA, which will strengthen its balance sheet and improve liquidity.
AIM-listed Hummingbird said the investment would help ensure it brings its second gold mine, Kouroussa in Guinea, into production as scheduled by the end of the second quarter, and help fast track exploration at the asset.
Funds will also be used to settle the deferred consideration payable to Cassidy Gold Corp relating to the acquisition of Kouroussa.
Hummingbird Chief Executive Dan Betts commented: "As we bring the development of our second mine at Kouroussa into production by the end of Q2 this year; we see this investment as the first step of a partnership with the ambition of building a multi asset international gold producer built on strong foundations in West Africa."
The investment will be made by way of a subscription agreement and split into two tranches of USD3.8 million and USD11.2 million respectively, with the latter payment subject to CIG shareholder approval.
The subscription has been priced at 7.79 pence per share, with around 157 million shares being issued to CIG.
Hummingbird will also issue around 22.7 million shares to Cassidy Gold Corp to fund the deferred consideration payable.
Shares in Hummingbird were 0.1% lower at 8.14 pence in London on Tuesday.
By Jeremy Cutler, Alliance News reporter
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Hummingbird Resources (HUM)