TIDMHUM
RNS Number : 0260R
Hummingbird Resources PLC
06 December 2016
Ticker: HUM / Index: AIM / Sector: Mining
Hummingbird Resources plc ("Hummingbird Resources" or "the
Company")
US$55 Million Debt Facility Fully Funds Yanfolila Gold
Project
Hummingbird Resources (AIM: HUM), is pleased to announce a US$45
million Senior Secured Term Facility and a US$10 million Cost
Overrun Facility (together the "Facility") with Taurus Funds
Management Pty Limited (as manager of the Taurus Mining Finance
Fund LP and Taurus Mining Finance Annex Fund LP) ("Taurus") for its
Yanfolila Gold Project in Mali ("Yanfolila" or "the Project").
Highlights:
-- US$45 million Senior Secured Term Facility
o Four-year term, 7.75% interest rate from point of Project
Completion (as defined below) and 9% interest rate from draw down
until that time, interest paid semi-annually
o Five semi-annual repayments to be made commencing 30 September
2018 and ending 30 September 2020
o 0.75% Gross Revenue Royalty capped at 2 million ounces ("Moz")
of gold
o No hedging requirement
-- US$10 million Cost Overrun Facility
o 11% interest rate on drawn funds
-- Existing Bridge Loan Facility with Taurus (as announced on 11
August 2014) increased to US$25 million from US$15 million and
extended to 8 April 2017
o Extension allows for documentation to be completed on the
Facility
o Bridge Loan expected to be refinanced by the Senior Secured
Term Facility
-- Total Project Capex for Yanfolila is US$88 million which
leaves the Project fully funded into positive cash flow with US$71
million of equity raised earlier this year combined with this
Facility
-- On budget and schedule for first gold pour from Yanfolila by
the end of 2017, targeting production of 132,000 oz in the first
year
Dan Betts, CEO of Hummingbird Resources, said:
"I am absolutely delighted after all the hard work by both
parties to have reached this milestone.
"Following successful equity raisings totalling US$71 million
earlier this year, I am happy to report that construction is now
well under way with over 20% of the Project capex committed. We are
very pleased with the progress made to date on site and securing
this additional debt facility sees the final corporate hurdle
overcome in order to expedite the construction process ahead of our
initial gold pour, targeted by the end of 2017.
"With the significantly lower debt gearing on the Project we are
happy that it now satisfies Taurus' requirements. Taurus has
completed all technical due diligence and the extension of the
Bridge Facility by a further US$10 million is representative of the
commitment to Yanfolila. Importantly there are no significant
conditions precedent required to refinance the Bridge Facility into
the first draw of the Term Facility. It is exciting to go into 2017
with a fantastic team in place and a fully funded, high margin gold
project already well into the construction phase.
"I would like to thank all the Hummingbird and Taurus staff for
their hard work in getting to this momentous point for the
Company."
Michael Davies, Executive Director of Taurus, said:
"We have completed an extremely rigorous due diligence process
on the Yanfolila Gold Project and are pleased to sign the mandate
for the debt facility with Hummingbird. We continue to work closely
with the Company as they develop and commission the Project and
look forward to a long and fruitful relationship."
Further Information
Hummingbird has entered into a mandate letter and extension to
the Bridge Loan Facility with Taurus (the "Mandate Letter").
Mandate for US$55 million Facility:
The Mandate Letter confirms the completion of satisfactory
technical, social and environmental due diligence and sets out the
key terms of the mandate for the US$45 million Senior Secured Loan
Facility and linked US$10 million Cost Overrun Facility.
Under the Facility, Taurus will provide a four-year US$45
million Senior Secured Loan and US$10 million Cost Overrun
Facility. Interest will be charged at a rate of 7.75% on the Senior
Secured Loan from Project Completion (which includes passing a
number of economic and mechanical tests associated with being in
commercial production, and the establishment of a Debt Service
Reserve Account) and 9% from draw down until that time, with
semi-annual payments. Interest will be charged at a rate of 11% on
the Cost Overrun Facility on drawn funds. Additionally, the
Facility has an Arranging Fee of 2%, and an undrawn commitment fee
of 2%.
The Senior Secured Facility is to be repaid through five
semi-annual repayments commencing 30 September 2018. Repayments are
to be the higher of an agreed amortisation profile or 40% of free
cash flow after paying interest. The Cost Overrun Facility is to be
repaid using 50% of free cash flow post meeting the required
repayment of the Senior Secured Facility and interest payments.
Additionally, early repayments are permitted without penalty.
Availability of the first tranche of the Facility to refinance
any amounts outstanding under the Bridge Loan Facility is subject
to finalisation of documentation and the satisfaction of limited
conditions precedent (in line with the Bridge Facility). The
availability of the balance of the Facility is subject to further
conditions precedent typical for a senior secured facility and cost
overrun facility.
Extension to Bridge Loan Facility:
To allow the development of the Yanfolila Gold Project to
continue whilst documentation is completed, Taurus has agreed to
increase the amount available to be drawn under the Bridge Loan
Facility from US$15 million to US$25 million and to extend the term
of the Bridge Loan until 8 April 2017.
The Mandate Letter provides for the first tranche of the Senior
Secured Term Loan Facility to be used to refinance amounts
outstanding under the Bridge Loan Facility.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
**ENDS**
For further information, please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts Hummingbird Resources Tel: +44 (0) 20
Thomas Hill plc 3416 3560
Robert Monro
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James Spinney Strand Hanson Limited Tel: +44 (0) 20
Ritchie Balmer Nominated & Financial 7409 3494
James Bellman Adviser
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Jon Belliss Beaufort Securities Tel: +44 (0) 20
Limited 7382 8300
Broker
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Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Susie Geliher Ltd 7236 1177
Financial PR/IR
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About Hummingbird Resources Plc
Notes to Editors
Hummingbird Resources (AIM: HUM) is building a leading gold
production, development and exploration company. The Company has
two core gold projects, the near-term production Yanfolila Gold
Project in Mali and the Dugbe Gold Project in Liberia. It is
currently building Yanfolila targeting first production by end of
2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total
Resources of 1.8Moz of gold and an additional 390,700oz of
non-compliant exploration potential. The high grade gold project
has low operating costs of US$695/oz AISC with 132,000oz of first
full year's production.
The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird
with excellent development upside. An optimisation of the DFS is
on-going whilst Yanfolila is brought to production in the
near-term. Additionally, the Company has 4,000km(2) highly
prospective exploration ground in Mali and Liberia and is
constantly evaluating new quality assets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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December 06, 2016 02:00 ET (07:00 GMT)