Akobo Minerals announces Extraordinary General Meeting as a step to prepare for the required funding of the Segele Mine
OSLO, 5 January 2024: Akobo Minerals AB (Euronext and Frankfurt: AKOBO) (OTCQX:AKOBF).
The Scandinavian-based Ethiopian gold exploration and boutique mining company intends to call for an Extraordinary General Meeting ("EGM") to be held on 2 February January 2024, at Södra Allégatan 13, Gothenburg, Sweden. The purpose of the EGM is to secure a necessary authorization for the Board of Directors to issue new shares with deviation from the pre-emption rights of shareholders. A notice to the EGM will be announced separately.
The company's Board of Directors emphasizes the importance of this move, which was prompted by the Q3 presentation and press release on 7 December 2023. During that update, Akobo Minerals highlighted the need for additional funding to advance the Segele mine into production.
To address this requirement, the Board of Directors proposes that the EGM resolves to authorize the Board of Directors, with deviation from the shareholders' preferential rights, to resolve to issue new shares, on one or several occasions until the time of the next Annual General Meeting. The company's share capital and the number of shares may, with the support of the authorization, be increased in total by an amount or number that fits within the framework of the articles of association in force at any given time. This resolution, if approved, will provide the company with the flexibility needed to raise the required funds efficiently.
The Board of Directors has appointed SpareBank 1 Markets as financial adviser to facilitate the upcoming funding process and to assist with further strategic considerations.
As part of the strategy to secure funding, the Board of Directors will extend an offer to holders of the two convertible loans issued 16 March 2023 and 20 August 2023, providing them the opportunity to convert the principal and interest at the same price as the upcoming share issue.
The company believes that this step is crucial to raising sufficient funds from both existing and new shareholders, ensuring the successful progression of the Segele mine project. The decision to call for an EGM reflects the commitment of Akobo Minerals to responsible and strategic financial management.
Shareholders intending to participate at the EGM are requested to follow the outlined procedures for registration and notification, as detailed in the notice to the EGM. The complete proposal regarding the authorization to the Board of Directors will be included in the notice.
The Board of Directors appreciates the ongoing support of shareholders and looks forward to their active participation in the EGM, understanding the significance of this decision for the future success of Akobo Minerals.
Jørgen Evjen, CEO
Mob: (+47) 92 80 40 14
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 13 years of on-the-ground activity.
Akobo Minerals holds a 16 km 2 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. 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 publicly listed on the Euronext Growth Oslo Exchange and the Frankfurt Stock Exchange under the ticker symbol AKOBO. For US investors, Akobo Minerals AB (OTCQX: AKOBF) is traded on the OTCQX Best Market, adhering to high financial standards, best practice corporate governance, and compliance with U.S. securities laws. Additionally, the company has a professional third-party sponsor introduction, and investors can access current financial disclosures and Real-Time Level 2 quotes for the company on www.otcmarkets.com.
Akobo Minerals places great emphasis on meeting and exceeding industry standards, fully complying with all aspects of the JORC code, 2012. For detailed information on their adherence to this code, please refer to https://www.jorc.org/.