(Ecofin Agency) - To advance its Yanfolila project in Mali, the mining firm Hummingbird raised $3.8 million through the private placement of 11.1 million new ordinary shares at 26p per share.

Proceeds from the fundraising will be used to determine the development potential of additional resources available near the mine where works are ongoing for first production by the end of 2017.

In terms of potential additional resources, the miner eyes the Gonka deposit situated 5km south of the project’s processing plant, and which is currently not included in the mine’s plan. A scoping study, published in February 2016, revealed a possibility to mine ore from the deposit at more 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,” said Managing Director Hummingbird, Dan Betts.

Besides Yanfolia where it holds a 30-year mining licence, Hummingbird has in its assets portfolio the Dugbe permits in Liberia, covering more than 3,200 km², and located 40km from the deep water port of Greenville.

Louis-Nino Kansoun