Hummingbird refinances Coris loans with $35.6m borrowing
By Josh White
Date: Tuesday 31 Dec 2024
(Sharecast News) - Hummingbird Resources announced the signing of a $35.6m loan agreement on Tuesday, to support the cash flow needs of its Malian subsidiary, Société des Mines de Komana (SMK).
The AIM-traded firm said the agreement, reached with Nioko Resources Corporation, would address its immediate financial challenges as announced earlier in the month.
It said the loan, which would carry an annual interest rate of 9%, would be repayable by 31 December 2025.
Although unsecured at the outset, it would eventually benefit from the same security arrangements currently held by Coris for other financings.
The loan agreement included standard default provisions and mandated repayment from the proceeds of any third-party financing, excluding Coris or suppliers, should Nioko's recommended cash offer, announced on 16 December, become unconditional.
"The refinancing of these loans is another critical step to enable the company to secure funding to alleviate Hummingbird's immediate financial needs," said interim chief executive officer Geoff Eyre.
"The constructive engagement with Coris also demonstrates its commitment to supporting Hummingbird during this challenging period as the company works towards achieving self-sustaining cash flows from operations."
At 0954 GMT, shares in Hummingbird Resources were down 3.54% at 2.18p.
Reporting by Josh White for Sharecast.com.
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