Hummingbird Resources PLC Settlement of claim from Taurus Funds Management (4335N)
24 September 2019 - 5:45PM
UK Regulatory
TIDMHUM
RNS Number : 4335N
Hummingbird Resources PLC
24 September 2019
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
24 September 2019
Hummingbird Resources plc
Settlement of claim from Taurus Funds Management
Hummingbird Resources (AIM:HUM) has agreed to settle a claim
from Taurus Funds Management Pty Ltd ("Taurus") for US$2.5m. The
value of the claim was in excess of US$10m.
As previously announced, in April 2017 Hummingbird terminated a
Mandate with Taurus to arrange a project finance facility (the
'Mandate'), and subsequently repaid the then outstanding bridge
loan, remaining interest and associated due diligence costs.
Hummingbird terminated the Mandate, in accordance with the
termination clause, due to a lack of confidence in the necessary
funding being made available by Taurus on a timely basis or on
terms acceptable to Hummingbird.
Following the termination of the Mandate, Hummingbird entered
into a loan agreement with Coris Bank, who provided the necessary
funding to enable the Yanfolila Project ("the Project") to be
completed on time and budget.
Subsequently in January 2018, after having received full
repayment of amounts due and releasing security held, Taurus filed
a claim in the English courts for the loss of the potential
facility fee and royalty which may have been payable had the
project finance loan agreement been entered into.
Whilst maintaining the position that no breach of the Mandate
occurred, the Board of Hummingbird has assessed settlement on a
number of criteria that sought to limit shareholder risk.
Recognising that all litigation carries a risk of unexpected
results; that even if a defence is successful not all costs are
recoverable, coupled with the prospect of a rapidly increasing
legal bill between now and trial; and that ongoing litigation is a
significant distraction for a small management team, it was deemed
prudent by the Board to reach a settlement if possible.
The settlement sum is payable 50 percent on or before 3 October
2019 and 50 percent on or before 31 March 2020. The Company
believes this is the most responsible course of action to eliminate
risk on behalf of shareholders and other stakeholders.
As it is near to the end of Q3 2019 the Company is pleased to
report that production to date for the quarter has been encouraging
and we remain in line to meet 2019 annual production guidance of
110-125,000ozs of gold. With the second ball mill fully
commissioned the Company is seeing increased throughput capacity at
the plant with improving economies of scale. The Company expects to
release its Q3 2019 operational update before the end of October
2019.
**ENDS**
For further information please visit
www.hummingbirdresources.co.uk or contact:
Daniel Betts, Hummingbird Resources plc Tel: +44 (0) 20 7409
CEO 6660
Thomas Hill,
FD
Robert Monro,
IR
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
James Bellman Nominated Adviser
-------------------------- ----------------------
James Asensio Canaccord Genuity Limited Tel: +44 (0) 20 7523
8000
Broker
-------------------------- ----------------------
Gordon Poole Camarco Tel: +44 (0) 20 3 757
Owen Roberts 4980
Ollie Head Financial PR/IR
-------------------------- ----------------------
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a leading gold production,
development and exploration company. The Company has two core gold
projects, the Yanfolila Gold Mine in Mali and the Dugbe Gold
Project in Liberia. Yanfolila produced its first gold pour on time
and budget in December 2017. Yanfolila held pre-production Probable
Reserves of 710,535ozs @ 3.14g/t, total Resources of 1.8Mozs of
gold and an additional 390,700ozs of non-compliant exploration
potential. The Dugbe Gold Project has Resources currently totalling
4.2Mozs of gold and a completed NI 43-101 compliant PEA on the
project showing a 29% IRR and US$186m NPV at a US$1,300 gold
price.
In addition to Hummingbird's production and development assets,
the Company also has an exploration footprint of 4,000km2 and an
interest in AIM-listed Cora Gold, which is advancing a portfolio of
prospects in Mali and Senegal.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCLIFVDAEISFIA
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