Akobo Minerals secures the first phase of funding for the Segele project

Akobo Minerals AB (publ) (“Akobo Minerals” or the “Company”) is pleased to announce that it has secured a convertible loan from NOK 49.175 million (around $5 million equivalent) to finance the first phase of the Segele boutique mining operation in Gambella, Ethiopia (the project”). The rest $7 million for the final phase of the project is envisaged to be financed by additional debt and/or equity. Akobo Minerals is currently continuing its evaluation of several financing alternatives.

“This convertible loan gives us enough flexibility to explore the optimal financial structure for the whole project, for the benefit of the company and all our shareholders. Supported by our main shareholders, in addition to some new faces, I am convinced that we will achieve a very good solution to see this project through to cash generation.Along with funding, we continue to deliver on schedule with site works on schedule.The design and procurement phases of the processing plant are well advanced and we anticipate the arrival of major parts in Ethiopia in a short time. Mining contract negotiations are very advanced and we expect to start in October,” says CEO Jørgen Evjen

The contribution of said amount, mainly from the main shareholders, is structured in the form of a short-term loan, maturing 12 months after the date of disbursement, which will be converted into shares in Akobo Minerals subject to compliance with certain conditions (the “Loan”). The loan will convert at a 15% discount on any private placement of shares made within the next 12 months, or if no private placement has taken place, at the lower price per share of either (i) NOK5.75 or (ii) the 30-day VWAP (with a 15% discount) after the expiration of that 12-month period. The Company also has the contractual right to convert the loan before this 12-month period at the same pricing conditions. The conversion of the Loan will take place by each lender subscribing for shares within the framework of a private placement by offsetting the amount of the loan for each lender with the subscription amount corresponding to the shares. The loan will bear 5% interest, which will accrue and convert with the principal amount of the loan. The effective conversion of the Loan will be subject to a resolution of the general meeting of shareholders of the Company. If the Company, for whatever reason, is unable to issue the required shares to the lenders, the Loan will be immediately repaid in full, together with accrued interest.

Further updates will be provided in due course.

SpareBank 1 Markets is acting as the company’s financial advisor in relation to the financing of the project. Advokatfirmaet Schjødt acts as legal counsel to the Company on matters of Norwegian law.

For more information contact:
Jorgen Evjen, CEO Akobo Minerals
Mobile: +47 92 80 40 14
Email: [email protected]
LinkedIn: www.linkedin.com/company/akobominerals
Twitter: @akobominerals
Web: https://akobominerals.com

Oslo, July 5, 2022

Akobo Minerals AB

About Akobo Minerals

Akobo Minerals is a gold exploration and mining company based in Scandinavia
company, currently holder of an exploration permit covering 182 km2 and having a
ongoing mining development in the Gambela and Dima Woreda region, Ethiopia. The
company has established itself as the leading gold exploration company in
Ethiopia thanks to more than 12 years of activity in the field.

Akobo Minerals holds a 16 km2 mining license and is working on mining start-up
of its very promising target Segele. It has an inferred and indicated mineral
Resource producing a world-class gold grade of 22.7 g/tonne, combined with a
estimated all-in sustaining cost (AISC) of $243 per ounce. Always open to
depth, the gold mineralized zone continues to expand and will have a positive effect
impact on future resource estimates and life of mine. The research permit holds
many promising prospects for construction of exploration resources both in the vicinity
of Segele and in the wider license area.

Akobo Minerals maintains excellent relationships with local communities
to national authorities and places environmental, social and governance issues
(ESG) at the heart of its activities – as evidenced by an industry
– prominent community program.

Akobo Minerals has built a strong local presence based on the principles of
good ethics, transparency and communication, and is ready to take on new
opportunities and projects 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 to build a gold portfolio
resources through high-impact exploration and mining, while adhering to a lean
operation of the company. The company is headquartered in Oslo and is listed on the
Euronext Growth Oslo Exchange under the symbol AKOBO.

Akobo Minerals fully meets and conforms to all parts of the JORC Code, 2012.
For more information, see https://www.jorc.org/

Important Information
This press release is not intended for publication or distribution, directly or indirectly, in
or in Australia, Canada, Japan, United States or any other jurisdiction
where it would be illegal. It is issued for informational purposes only and does not
does not constitute or form part of an offer or solicitation to buy or
subscribe to securities, United States or in any other jurisdiction. The
the securities referred to herein have not been and will not be registered under
the WE Securities Act of 1933, as amended (the “WE Securities Law”), and may
not to be offered or sold in United States lack of registration or under
an exemption from registration under the WE Securities Act. Akobo Minerals
does not intend to register any part of the offering of the securities in the
United States or make a public offering of securities in the United States
States. Copies of this publication are not, and may not be, distributed or
sent in Australia, Canada, Japan Where United States.

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