Akobo Minerals secures first phase of the Segele project financing

Akobo Minerals AB (publ) (“Akobo Minerals” or the “Company”) is pleased to announce that is has secured a convertible loan of NOK 49.175 million (around USD 5 million equivalent) to fund the first phase of the Segele boutique mining operation in Gambella, Ethiopia (the “Project”). The remaining USD 7 million for the final phase of the Project is contemplated to be financed by additional debt and/or equity. Akobo Minerals is currently progressing its assessment of several financing alternatives.


“This convertible loan provides us with sufficient flexibility to explore the optimal financial structure for the overall project, benefitting the company and all of our shareholders. Supported by our major shareholders, in addition to a few new faces, I feel comfortable that we will reach a very good solution to see this project through to cash flow generation. In parallel to the financing we continue to deliver on plan with work at site on schedule. The processing plant design and supply phases are well underway and we expect major parts to arrive in Ethiopia within a short period. Contract mining negotiations are very advanced and we expect to break ground in October”, says CEO Jørgen Evjen


The contribution of said amount, primarily from major shareholders, is structured as a short-term loan, maturing 12 months after the date of disbursement, which will be converted into shares in Akobo Minerals subject to certain conditions being met (the “Loan”). The Loan will be converted at a discount of 15% to any private placement of shares conducted in the next 12 months, or if no such private placement has taken place, at the lowest price per share of either (i) NOK 5.75 or (ii) the 30-day VWAP (with a 15% discount) after the expiry of such 12-month period. The Company also has a contractual right to convert the Loan prior to such 12-month period at the same pricing terms. The conversion of the Loan will take place by each lender subscribing for shares in a private placement through off-setting the loan amount for each lender against the relevant subscription amount for the shares. The Loan will carry a 5% interest, which will accrue and be converted together with the principal amount of the Loan. The actual conversion of the Loan will be subject to a resolution by the shareholders' meeting of the Company. If the Company, for whatever reason, is not able to issue the required shares to the lenders, the Loan shall be immediately repaid in full, together with accrued interest.


Further updates will be provided in due course.


SpareBank 1 Markets acts as Financial Advisor to the Company in relation to the Project Financing. Advokatfirmaet Schjødt is acting as the legal advisor to the Company on Norwegian 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


Oslo, 5 July 2022

Akobo Minerals AB


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 licence 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 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 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/

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.