Hummingbird Resources raises $3.8m in private placing

West African gold miner Hummingbird Resources raised about $3.8m in a private placing with Fidelity Investments.

The funds were raised through a placing of 11.1m new ordinary shares at 26p per share to invest further in its Yanfolila mine and develop additional mining resources while targeting production levels next year.

The AIM listed company is developing its 2.2 Moz Yanfolia gold project in Mali, which has a production target by the end of 2017.

Hummingbird Resources managing director, Dan Betts, said: "Another avenue for considerable further upside is our Gonka deposit, 5km south of the gold plant location, which is not currently included in the Yanfolila mine plan.

"Gonka's scoping study, released in February 2016, showed the potential for mining ore at greater than 4.5g/t. Further infill drilling, if successful, could bring this into the reserves category and potentially add material ounces to our production profile for very limited capital."

Shares in Hummingbird Resources were up 2.46% to 26p at 1213 BST.