Hummingbird Resources (HUM ), an Africa-focused gold explorer, updated markets on results from its open offer announced on February 22 alongside a placing and subscription aimed to raise capital in support of its Kouroussa gold mine.
The fundraise comprised of a US$15m investment by CIG SA announced earlier in February, a conditional subscription of US$1.5m from existing institutional shareholders, and an open offer to raise up to US$2.4m from other shareholders all at 7.79p/share.
Hummingbird has now confirmed that the open offer has closed after raising US$734k from the issue of 7,920,997 new shares. Should all fundraising efforts pass a vote at the company's general meeting on 13 March 2023, the fundraise will total US$17.1m.
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A fresh injection of capital into Hummingbird's balance sheet will support the company's ambitious growth strategy and ensure its Kourussa gold mine in Guinea remains on schedule for first gold pour at the end of Q2 2023. Kuroussa boasts a current reserve of 647,000 oz at 4.15 g/t. The mine is estimated to produce 120,000-140,000 oz for the first 3 years of production and average 100,000 oz over its initial life of mine (LOM).
Kourussa is undergoing exploratory drilling, with potential LOM upside expected in H2. Hummingbird expects Kourussa to push it past 200,000 oz of gold production.
Hummingbird released today a video update on Kouroussa's progress:
Announced earlier in February, CIG's US$15m investment into Hummingbird represents an endorsement of the company's growth strategy in West Africa. Upon completion of both tranches, CIG will hold a 25.6% interest in Hummingbird. Today's confirmation of an added placement and open offer will boost that liquidity injection to US$17.1m, ensuring the company remains funded to fast-track remaining exploration of Kuroussa and future assets.
Hummingbird's flagship mine at Yanfolila, Mali outperformed last quarter with strong momentum continuing into the current quarter. With Kouroussa on track to begin production by end of Q2 2023, the company is at a pivotal juncture for growth that may begin reflecting in its balance sheet in H2. Current and prospective investors should Hummingbird to be notified of its next quarterly update and developments at its two key projects.
HUM shares climbed 2.7% on the news.