(Ecofin Agency) - Mining firm Hummingbird Resources raised a total of $67 million to begin construction of its Yanfolia gold mine. The firm will use the money to complete detailed technical studies and order long-lead delivery equipment for the construction.

The firm raised this sum by placing 103.69 million shares and subscribing to 104,690,000 shares at 22p a share. Moreover, Hummingbird mentioned a possible overallotment option (issuing of a fixed number of additional shares to maintain price stability), which could help it raise another $10 million through the placement of 31 million new shares.

"We are now in a position to commence full-scale construction in order to bring Yanfolila, one of the highest margin undeveloped gold projects in Africa, to production. Yanfolila will produce over US$70m of free cash flow in its first full year of steady state production,” Dan Betts, CEO Hummingbird.

Besides Yanfolia where it holds a 30-year mining license, Hummingbird’s assets portfolio includes the Dugbe licenses in Liberia that cover more than 3,200 km2, and are located 40 km from the Greenville deep-water port.