Africa-focused Hummingbird Resources (AIM: HUM) unveiled a strategy to secure up to $32.7 million in total gross 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 $2 million from new shareholders and an open offer to existing shareholders to raise up to $5 million.
Hummingbird also provided an operational and exploration update in which it noted that was transforming its 51% interest in the Dugbe gold project into a controlling 51% shareholding in Pasofino Gold Limited (TSX-V: VEIN)(OTCQB: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 it saw this year lower mining productivity rates than expected, Hummingbird said it was working with key contractors and bringing in additional mining fleet to reach commercial production for a full year in 2024.
Looking ahead, the miner expects to produce around 200,000 ounces of gold in fiscal year 2024.
The company said detailed production and AISC guidance for FY-2024 will be provided, as well as an operational and trading update at the end of January.