Africa-focused Hummingbird Resources (AIM: HUM) unveiled on Thursday a plan to secure up to US$32.7 million ($43.5 million) in total proceeds to fund its growth strategy, exploration activities, advance its Dugbe gold project in Liberia, and boost its balance sheet.
The gold producer said it will sell newly minted shares priced at 11.2625 pence each to achieve its target. The plan includes an additional conditional subscription of US$2 million from new shareholders and an open offer to existing shareholders to raise up to US$5 million.
Hummingbird also provided an operational and exploration update in which it noted that it’s transforming its 51% interest in Dugbe into a controlling 51% shareholding in Pasofino Gold (TSX-V: VEIN; US-OTC: EFRGF). The move, it said, simplifies the ownership structure of the assets, ensuring more efficient decision-making and project progression.
The company acknowledged challenges ramping-up operations at its Kouroussa mine in Guinea. While this year it saw lower mining productivity rates than expected, Hummingbird said it was working with key contractors and bringing in additional mining fleets to reach commercial production for a full year in 2024.
Looking ahead, the miner expects to produce around 200,000 oz. of gold in fiscal year 2024.
The company said detailed production and all-in sustaining costs guidance for FY-2024 will be provided in an operational and trading update at the end of January.
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