AMN - MALI: First Yanfolila gold expected end of 2017

Hummingbird Resources has released news of its ongoing projects in its interim results, with progress towards delivering first gold pour from Yanfolila, one of the highest margin undeveloped gold projects in Africa by the end of 2017.

The company has raised £49.5 million (approximately US$71 million) in June under a placing, subscription and overallotment option through the issue of a total of 225,188,781 shares at 22 pence per share

It has raised a further US$4 million post period end in a private placing with Fidelity Investments through the placing of 11,100,000 new ordinary shares at 26 pence per share – an 18% premium to June fundraise.

2016 has seen Hummingbird distinguish itself as an emerging pre-production company with a portfolio of two high value projects in West Africa, and the ability to deliver one of the highest margin undeveloped gold projects in Africa by the end of 2017.

The inherent potential and tangible value of Yanfolila, the 2.2 million ounce gold project in Mali has been highlighted through the outstanding support that it has received from the market.

Yanfolila, is currently rapidly moving through the gears of development ahead of anticipated first gold pour at the end of next year. 132,000oz gold is targeted for the first full year of production, which would deliver around US$70 million of free cash flow at the current gold price. Yanfolila has an IRR of 60% and an NPV of US$162 million at US$1250/oz gold price, making it one of the highest margin undeveloped gold projects in Africa. All in sustaining costs of US$695 per ounce places it in the lowest quartile of African producers.

www.hummingbirdresources.co.uk

News courtesy of International Mining