Hummingbird Resources (HUM:AIM)
The Project capex for Yanfolila of US$88 million, is now fully funded. After a rigorous due diligence process, Taurus Funds Management Pty Limited has agreed to provide a US$45 million Senior Secured Term Facility and a US$10 million Cost Overrun Facility for the Yanfolila Gold project in Mali. The existing Bridge Loan Facility with Taurus has been increased to US$25 million from US$15 million and extended to 8 April 2017. The Bridge loan will be refinanced by the Senior Secured Term Facility upon completed documentation and the satisfaction of limited conditions required with the Bridge Facility.
The facility has a four-year term and carries a 7.75% interest rate from point of project completion and 9% interest rate paid semi-annually, from draw down until that time. There will be five semi-annual repayments to be made commencing 30 September 2018 and ending 30 September 2020. The repayments are be the higher of an agreed amortisation profile or 40% of free cash flow after paying interest. There is a 0.75% Gross Revenue Royalty capped at 2 million oz of gold.
The Cost Overrun facility will have an 11% interest rate on drawn funds and is to be repaid using 50% of free cash flow post meeting the required repayment of the Senior Secured Facility and interest payments. Early repayments can be made without penalty.
Dan Betts, CEO of Hummingbird said: “It is exciting to go into 2017 with a fantastic team in place and a fully funded, high margin gold project already well into the construction phase. ”