Akobo Minerals secures NOK 22.475 million in funding through a convertible loan
OSLO, 20 March 2023: Akobo Minerals AB (publ) (Euronext and Frankfurt: AKOBO), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today announced that it has issued an unsecured convertible loan (the "Loan") of NOK 22.475 million (approx. USD two million) from new and existing investors to fund the final phase of its Segele mining operation in Gambella, Ethiopia (the “Project”). The board of directors and management of Akobo Minerals contributed with NOK 3.8 million of the funds.
Announcing details of the loan, Jørgen Evjen, CEO of Akobo Minerals, said: “Akobo Minerals is very pleased with the interest gained in the issuance of the Loan, and the trust provided by new and existing investors. The project is moving forward and the delivery of all processing plant shipments, except one, to arrive in Ethiopia by end of March. The ultra small plant delivered by Solo Resources has already arrived in Addis Ababa and is expected to be operational within a few weeks.”
He added: “Mining operations continue both at the main incline shaft and at the winzes that will go directly into the orebody. The exploration team are continuing to work at the exciting new discovery at Gingibil where visible gold was discovered in recent weeks.”
The loan contribution - primarily from major shareholders - has a term of two years and an interest rate of 15 % p.a. The Loan may be converted into shares on a quarterly basis or at the maturity date, subject to certain conditions being met. If converted, the conversion of the Loan will take place by each lender subscribing for shares through off-setting the Loan amount (including accrued interest) against a conversion price of NOK 6.90 per Akobo Minerals share. The actual conversion of the Loan is subject to a resolution at the company’s shareholders' meeting. If the company, for whatever reason, is not able to issue the required shares to the lenders, the Loan shall be repaid in full, together with accrued interest.
Further updates on operational activities and exploration targets will be provided in due course.
DISCLOSURE REGULATION
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Advokatfirmaet Schjødt has acted as legal advisor to the company on Norwegian and Swedish law matters.
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 Akobo Minerals
Akobo Minerals is a Scandinavian-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 of 68.000 ounces 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 to depth, the gold mineralised 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 we place environment and social governance (ESG) at the heart of our activities – as demonstrated by a planned industry-leading extending shared value 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, whilst adhering to a lean business operation. The company is headquartered in Oslo and is listed on the Euronext Growth Oslo Exchange and Frankfurt Stock Exchange under the ticker symbol, AKOBO.
Important information
This release is not for publication or distribution, directly or indirectly, in or into Australia, Canada, Japan, the United States or any other jurisdictions where it would be illegal. It is issued for information purposes only and does not constitute or form part of any offer or solicitation to purchase or subscribe for securities, in the United States or in any other jurisdiction. The securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States absent registration or pursuant to an exemption from registration under the U.S. Securities Act. Akobo Minerals does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States. Copies of this publication are not being, and may not be, distributed or sent into Australia, Canada, Japan or the United States.