Aim-listed gold producer Hummingbird Resources is expecting to receive the second tranche of a $20-million loan facility from lender CIG in the next few days.
On September 27, Hummingbird announced the total loan facility from CIG, made up of a new $20-million loan to be provided in tranches, alongside the consolidation of a previously announced $10-million short-term loan with CIG into the facility.
The first $10-million tranche of the new $20-million loan was received in September.
The company said on November 1 that these funds would help facilitate repayments to another lender Coris, which is controlled by the same principal as CIG.
Hummingbird said there were ongoing discussions with Coris and CIG, and CIG subsidiary Nioko Resources –Hummingbird’s largest shareholder – concerning its liquidity position and the grant of short-term waivers.
As of the end of the third quarter, Hummingbird held net bank debt of about $135-million with Coris, including about $90-million of which is secured against the company’s assets.
In addition, the company has about $20-million of unsecured debt to CIG, which initially matures on December 31.
The company said it is in advanced discussions with Coris to partially restructure its outstanding debt and to reschedule payments due under its agreements with Coris.
Following progress made in these discussions, Coris has agreed to defer payments totalling about $30-million, including accrued interest, that was due on October 31, pending agreement on the wider restructuring being concluded by November 6.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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