Aim-listed Hummingbird Resources has completed the strategic refinancing of a portion of its existing loan facilities with the company's principal financing partner Coris Bank International.

Hummingbird has secured a refinancing package of about $25-million at a yearly interest rate of 12%. This new financing will be used to meet the company's existing loan obligations due in the second quarter of this year, providing a two-year deferment of specific facilities currently held with Coris Bank.

The new facility has a 24-month term with repayments, following a 12-month pause on capital and interest, scheduled across three tranches beginning in the second half of 2025.

The company says its net debt position will not change because the full quantum of the facility is being used to repay existing obligations owed to Coris Bank.

This strategic refinancing is a key component of Hummingbird's broader financial strategy, aimed at reinforcing the company’s balance sheet and ensuring operational continuity amid the ongoing adjustments at the company’s Kouroussa and Yanfolila gold mines, in Guinea and Mali, respectively.

Hummingbird says it positions the company to better manage its resources while continuing the ramp-up to achieve commercial production, which is anticipated later this quarter.

Coris Bank is controlled by the same principal as Hummingbird’s largest shareholder. The company entering the refinancing package is therefore classified as a related party transaction pursuant to the Aim Rules for Companies.

In this regard, Hummingbird directors confirm, having consulted with its nominated adviser Strand Hanson, that they consider the terms of the refinancing package to be fair and reasonable insofar as its shareholders are concerned.

"The refinancing with Coris Bank is a significant step in enhancing Hummingbird’s financial resilience. We fully appreciate the ongoing support and constructive relationship with Coris, which has been instrumental in working through recent challenges and in the development of Hummingbird over the last several years.

This move not only reduces near-term balance sheet constraints but also helps position us to navigate the current operating environment as we finalise the ramp-up at Kouroussa and target commercial production later this quarter,” says Hummingbird CEO Dan Betts.