LONDON - Hummingbird Resources PLC (AIM: HUM), a gold producing company, announced on Monday that it has entered into a binding agreement regarding a loan extension and has successfully issued new shares following a General Meeting on Sunday. The company's immediate financial pressures are to be addressed with the support from Nioko Resources Corporation and CIG SA.
Hummingbird has executed a Tripartite Agreement for the extension of the New CIG Loan, which is now set to mature on February 28, 2025. This follows the issuance of Stage 1 Conversion Shares. In response to the shareholder approval of all resolutions at the General Meeting, Hummingbird is actively working with Nioko to secure short-term financial support.
The company has issued 130,958,159 new ordinary shares at a conversion price of 2.6777 pence per share, admitted to trading on the AIM market of the London Stock Exchange (LON:LSEG). After this issuance, Hummingbird's issued share capital consists of 942,267,149 ordinary shares.
Interim CEO Geoff Eyre commented on the significance of the General Meeting's outcomes, stating that the approval of the resolutions was critical for securing the necessary funding to mitigate the company's immediate financial challenges. He also acknowledged Nioko's commitment to supporting Hummingbird during this period.
Hummingbird Resources, a member of the World Gold Council and a founding member of Single Mine Origin, operates the Yanfolila Gold Mine in Mali and the Kouroussa Gold Mine in Guinea. Additionally, the company has a controlling interest in the Dugbe Gold Project in Liberia, which is being developed by Pasofino Gold Limited.
The recent developments come as Hummingbird aims to achieve self-sustaining cash flows from its operations. The company's vision includes growing its asset base and maintaining profitable gold production while adhering to its Environmental, Social & Governance (ESG) policies and practices.
This corporate update, including the issuance of new shares and the loan extension, is based on a press release statement from Hummingbird Resources.
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