Gold mining company Hummingbird Resources has extended its $15 million bridge loan with Taurus Mining Finance Fund for the Yanfolia gold project in Mali. A bridge loan is a type of gap financing arrangement wherein the borrower can get access to short-term loans for meeting short-term liquidity requirements. In the present case, the transaction allows both parties to work toward a fully funded finance package for the Yanfolia gold project.

Additionally, SENET, who completed part of the definitive feasibility study (DFS), namely, the process design and the engineering study, has agreed to defer $1.7 million due in April 2016 for an additional 12 months.

DFS’ results demonstrates significant improvement of the mine’s economics as an open-pit, low-cost gold operation.

According to the American investment bank Cantor Fitzgerald, the deferral is good news for Hummingbird’s short-term finances. The bank hopes lenders will implement a financing mechanism which will allow the firm to complete Yanfolia project and allow cash flow to be generative within the next six months.

Hummingbird recently reported that Gonka, an extension of Yanfolia located 5km south, has a potential of 92,000 ounces of gold at 2.3 g/t in open pit and 77,000 ounces at 4.5g/t for the underground. The extension is to last four years.

All these increase Yanfolia’s NVP to $166 million at a $1,250/oz gold price.

Hummingbird Resources Plc holds a 30-year mining permit for Yanfolia project. 

Louis-Nino KANSOUN