Akobo Minerals signs Mandate Letter with international debt arranger
OSLO, 10 August 2022: Akobo Minerals (Euronext Oslo – “AKOBO”), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today announces that it has signed a mandate letter (the "Mandate Letter") with an international debt arranger for a contemplated loan of up to USD 8 million (the "Loan").
Pursuant to the Mandate Letter, the intention is to complete all conditions precedent, including a customary due diligence, site visit and agreeing on relevant documentation prior to entering into the final loan agreement. Further, it is expected that Akobo Minerals will grant the lender warrants representing 2.0% of its equity, with a strike price equal to the Akobo Mineral's share price on the Mandate Letter signing date, where such warrants will vest immediately. The contemplated Loan is expected to provide Akobo Minerals with sufficient funding to complete its mining development and start production in Q1 2023.
The Mandate Letter is not a binding loan agreement and there can be no guarantees that a final loan agreement will be entered into and/or that the Loan will be funded to Akobo Minerals.
Further information concerning the terms and conditions of the Loan will be provided by the Company in due course.
For more information, contact:
Jørgen Evjen, CEO Akobo Minerals
Mob: +47 92 80 40 14
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/