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Hummingbird Resources PLC - AIM-listed gold mining company based in London - Conditionally agrees with Nioko Resources Corp, its largest shareholder with 42% of its shares and a wholly owned subsidiary of CIG Ltd, to issue 863.1 million new ordinary shares at 2.68 pence each. The deal will convert around £23.1 million, representing a $30 million loan facility from CIG, into equity. The issuance will raise CIG’s stake to 72% in two stages. CIG then must announce a voluntary cash offer for the remaining shares at the same price of 2.68p. Hummingbird’s independent directors, excluding two, consider the terms of the subscription ‘fair and reasonable’. CIG ‘is still conducting its due diligence on the company and, while discussions are continuing, there can be no certainty that any firm offer will be made,’ Hummingbird says. Current stock price: 1.71 pence, up 25% in London on Thursday afternoon 12-month change: Down 83% Copyright 2024 Alliance News Ltd. All Rights reserved.
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