Akobo Minerals initiates process to raise up to NOK 30 million in a convertible loan
OSLO, 21 October 2024: Akobo Minerals AB (publ) (Euronext and Frankfurt: AKOBO), a Scandinavian-based Ethiopian gold exploration and mining company, has initiated a process to secure a convertible loan of up to NOK 30 million. The loan already has strong interest from major shareholders, underscoring the continued support for Akobo Minerals.
The company has now entered a new phase, actively producing gold. The first gold bar has already been produced, and the company is well positioned to increase daily production as it approaches some of the richest sections of the Segele deposit, which boasts an average grade of 75 grams per ton. While Akobo Minerals is making strong progress towards covering its operating expenses, the company recognizes the need for additional financing to sustain this momentum and support longer-term strategic goals, in addition to evaluating ongoing external funding process.
The company is seeking to raise up to NOK 30 million through a 2-year convertible loan. This loan offers a 20% annual interest rate and the opportunity to convert the loan into equity at a 15% discount under specified terms and conditions. The financing is expected to be completed by the end of the month.
Following discussions with major shareholders and other stakeholders, the final terms and conditions, including the allocation and participation in the loan, will be confirmed by the Board of Directors prior to completion of the financing.
This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act and the EU Market Abuse Regulation (MAR).
For more information, contact:
Jørgen Evjen, CEO, Akobo Minerals
Mob: (+47) 92 80 40 14
Mail: [email protected]
LinkedIn: www.linkedin.com/company/akobominerals
About Akobo Minerals
Akobo Minerals is a Scandinavian-based gold exploration and mining company, currently holding an exploration license covering 182 km2 and a mining license covering 16 km2 in the Gambela region and Dima Woreda, Ethiopia. The company has established itself as a leading gold exploration company in Ethiopia through more than 14 years of on-the-ground activity, which has now been enhanced further with the startup of its Segele mine.
Akobo Minerals’ Segele mine 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 the life expectancy of the mine. 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 the company places environment and social governance (ESG) at the heart of its activities – as demonstrated by a planned, industry-leading, extended shared value program.
Akobo Minerals has built a strong local foothold based on 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. 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/. Akobo Minerals' unwavering commitment to ethical practices, community engagement, and environmental responsibility positions them as a formidable force in the evolving landscape of the Ethiopian mining sector.
