Aim-listed gold explorer and developer Hummingbird Resources reports that a conditional $1.4-million has been invested into the company by certain existing institutional shareholders.

This comes on the back of $15-million being invested into Hummingbird on February 7 by African investment company CIG SA.

Hummingbird notes that it is also providing other shareholders in the company with the opportunity to subscribe for new ordinary shares at the same price as those acquired by CIG – 7.79p apiece, through an open offer to raise up to $2.4-million.

The CIG investment, the $1.4-million subscription and the open offer combined, referred to as the placement, will result in total gross proceeds for Hummingbird of up to $19-million.

Hummingbird intends to use the proceeds of the placement to strengthen its balance sheet and provide improved liquidity to ensure the company brings its second gold mine – Kouroussa, in Guinea – into production as scheduled for first pour by the end of the second quarter.

Hummingbird CEO Dan Betts says CIG's investment endorses the company's strategy for growth with a strategic partner to underpin that ambition, both in the West African region and beyond.

He adds that the subscription and the open offer have been added to ensure Hummingbird’s existing shareholders have the opportunity to participate alongside the CIG investment.

The addition of a producing Kouroussa mine will make Hummingbird a producer of more than 200 000 oz/y of gold.

The proceeds will be used to fast-track further exploration at the asset.

“With the operational performance improving at Yanfolila, and Kouroussa on track to start production by the end of the second quarter, the company is at a pivotal juncture for significant growth, with expectations for improved cash flow generation, a stronger balance sheet and a solid platform for further growth in the second half of the year, and beyond,” says Betts.