LONDON (ShareCast) - Gold explorer Hummingbird Resources fell 8% on Wednesday after the company said it raised about £3.5m in a discounted share placing.
Hummingbird placed 10.6m shares at 33p each and said the funds will be used primarily to advance its Yanfolila gold project in Mali to near-term production and for working capital purposes.

Group chief executive Dan Betts said: "Following the recent appointment of Beaufort Securities as joint broker we received strong demand particularly from the retail community and as such, we are delighted to have raised £3.5m.

"Having bolstered our cash balance, increased our retail following and potential liquidity, we are now in an even stronger position to deliver our first gold pour at Yanfolila in 2016 where plant earthworks are already underway."

In a separate statement, the company said that technical studies at Yanfolia, which are now completed, showed "significant potential for improved economics of developing Yanfolila as an open-pit mining operation."

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