Akobo Minerals reaches agreement with experienced underground mining contractor

OSLO, 01 August 2022: Akobo Minerals (Euronext Oslo – “AKOBO”), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today announced that it has reached an agreement with the South African company IW Mining (Pty) Ltd to operate the underground mine at Segele.

IW mining is a highly experienced mining contractor with years of hard-won underground mining experience in the tough South African mining arena. This fundamental agreement secures Akobo Minerals access to personnel and competence for mining of the Segele gold ore according to the following timeline;

• Mining to be underway in October 2022
• First gold extraction to begin in Q1 2023
• Full production expected to begin by end of Q2 2023

In line with the company's ESG guidelines, IW Mining will recruit and train a significant number of Ethiopian personnel who will work with the Segele mine.

Already a lot of planning and preparation have been undertaken together with IW Mining for the last few months ahead of the signing of the agreement. Sourcing of mining equipment has already begun and first shipments to be dispatched imminently. IW Mining will mobilize an experienced mining team from South Africa that will travel to Segele within weeks.

Jørgen Evjen, CEO of Akobo Minerals, stated: “Getting IW Mining on board was the last piece of the puzzle. Together with Solo Resources for the plant production we have now secured all necessary expertise to start mining. With Ian and Willem guiding us through the next phase of development I am sure we will succeed with our plans. Our companies share the same values and philosophy, delivering responsible and world class projects. “

Ian Lowers, CEO of IW Mining Services, stated: “Our aim has always been to provide a level of service that exceeds the normal contractual Scope of Work. For IW Mining Services this contract in Ethiopia with Akobo Minerals is an important milestone in line with our growth strategy. IW Mining Services has committed itself fully to ensuring the success of this unique project by being a responsible partner in mining innovation. Our belief is that this mining project is the beginning of a strategic multi party partnership in Ethiopia between Akobo Minerals and IW Mining Services.”

Akobo Minerals is now ramping up activities in all areas for preparation of mining operations. With the newly secured Convertible loan and signing of Solo Resources on plant design and production in May all tasks are on track. Solo Resources has already completed design work and the process plant is now under fabrication and deliveries of the parts will begin shortly. The final project funding is also moving forward with several positive dialogues ongoing.

For more information, contact:
 

Jørgen Evjen, CEO Akobo Minerals
Mob: +47 92 80 40 14
Mail: jorgen@akobominerals.com
 

LinkedIn: www.linkedin.com/company/akobominerals

Twitter: @akobominerals
Web: https://akobominerals.com

About IW Mining

IW Mining Services is a small yet focused Mining and Services contractor.  As a Contractor, IW Mining Services has delivered a wide range of services such as Conveyor Belt installation, Drop Raise training, Face Advance improvement, Equipment reclamation and Underground Mining stoping and development to a number of the major Mining Houses in South Africa over the past seven years.

As the founders of I W Mining Services Messrs Willem Pelser and Ian Lowers have a combined 70 years of mining experience in various roles on Gold and Platinum Mines

IW Mining Services is determined to make a positive impact on the Ethiopian mining industry by transferring mining knowledge, creating employment opportunities through competency-based skills training and ensuring world class safety standards always with local community involvement in the project.

About Akobo Minerals

Akobo Minerals is a Scandinavia-based gold exploration and boutique mining company, currently holding an exploration license covering 182 km2 and with an ongoing mine development in the Gambela region and Dima Woreda, Ethiopia. The company has established itself as the leading gold exploration company in Ethiopia through more than 12 years of on-the-ground activity.

Akobo Minerals holds a 16 km2 mining license and is working to start up mining of its very promising Segele target. It has an Inferred and Indicated Mineral Resource yielding a world-class gold grade of 22.7 g/ton, combined with an estimated all-in sustaining cost (AISC) of 243 USD per ounce. Still open at depth, the gold mineralized zone continues to expand and will have a positive impact on future resource estimates and mine-life. The exploration license holds numerous promising exploration resource-building prospects in both the vicinity of Segele and in the wider license area.

Akobo Minerals has an excellent relationship with local communities all the way up to national authorities and it places environment, social and governance (ESG) at the heart of its activities - as demonstrated by an industry-leading community program.

Akobo Minerals has built a strong local foothold based upon the principles of sound ethics, transparency, and communication, and is ready to take on new opportunities and ventures as they arise. The company is uniquely positioned to become a major player in the future development of the very promising Ethiopian mining industry.

Akobo Minerals has a clear strategy aimed at building a portfolio of gold resources through high-impact exploration and mining, while adhering to a lean business operation. The company is headquartered in Oslo and is listed on the Euronext Growth Oslo Exchange under the ticker symbol AKOBO.

Akobo Minerals fully meets and complies with all parts of the JORC code, 2012. For further information, see https://www.jorc.org/