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Hummingbird Resources PLC - gold miner with operations in Mali, Guinea and Liberia - Agrees £13.8 million cash takeover from Nioko Resources Corp. Nioko offers 2.6777 pence per Hummingbird share. Nioko is a wholly-owned subsidiary of CIG. Hummingbird agrees that $30 million outstanding under the new CIG loan will be converted, in two tranches, into ordinary shares in Hummingbird. The conversion would increase Nioko’s voting rights to around 50% from 42%, and thereafter to around 72%. Hummingbird says will need to work with its creditors to restructure some $140 million in debt. Geoff Eyre, chief executive of Hummingbird, comments: ‘Hummingbird requires a very material amount in equity financing to address the significant issues facing the business.’ ‘With a debt repayment schedule of $30 million due by the end of December to CIG adding additional financial strain to the company’s balance sheet, the offer by Nioko represents an opportunity for independent shareholders to realise some cash sum for their holding now, which may not otherwise be available if the resolutions are not passed.’ Current share price: 1.65 pence 12-month change: down 84% Copyright 2024 Alliance News Ltd. All Rights Reserved.
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