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LONDON - Hummingbird Resources PLC (AIM: HUM), a gold producing company, announced on Monday that it has entered into a financing agreement to support its immediate financial obligations. The company has secured a $5 million unsecured, interest-free loan facility from CIG SA, which is due to be repaid over 12 months starting April 1, 2025. In addition to the loan, Hummingbird has agreed to a fixed royalty of $2.8 million, payable monthly from March 1, 2025, to February 28, 2026.
The loan facility is intended to help the company meet its first installment payment to the Mali Government, following the signing of the Mali Protocol. Hummingbird has the option to repay the outstanding principal and remaining royalty obligations in full at any time, with full repayment triggered by March 1, 2026, or upon restructuring of the Group's debt. An arrangement fee of one percent of the loan amount is payable upon the final repayment.
Interim CEO Geoff Eyre expressed gratitude for the support from CIG SA, stating that the agreement allows the company to focus on long-term growth and stability. The transaction between Hummingbird and CIG SA qualifies as a related party transaction under the AIM Rules for Companies. The independent directors of Hummingbird, having consulted with the company's Nominated Adviser, Strand Hanson Limited, have deemed the terms of the loan and royalty agreement to be fair and reasonable for shareholders.
This financing move comes as Hummingbird continues to manage its portfolio of gold projects, including the operational Yanfolila Gold Mine in Mali and the Kouroussa Gold Mine in Guinea. The company is also involved in the Dugbe Gold Project in Liberia, which is being developed with joint venture partners and has shown promising feasibility results.
The announcement is based on a press release statement and contains information now in the public domain, as stipulated under relevant market abuse regulations.
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