Akobo Minerals secures NOK 22.475m in funding through a convertible Loan
Akobo Minerals AB (publ) (Euronext and Frankfurt: AKOBO), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today announced that it has issued an unsecured convertible loan (the “Loan”) of NOK 22.475 million (approx. USD two million) from new and existing investors to fund the final phase of its Segele mining operation in Gambella, Ethiopia (the “Project”).
The board of directors and management of Akobo Minerals contributed with NOK 3.8 million of the funds.
Announcing details of the loan, Jørgen Evjen, CEO of Akobo Minerals, said: “Akobo Minerals is very pleased with the interest gained in the issuance of the Loan, and the trust provided by new and existing investors. The project is moving forward and the delivery of all processing plant shipments, except one, to arrive in Ethiopia by the end of March. The ultra small plant delivered by Solo Resources has already arrived in Addis Ababa and is expected to be operational within a few weeks.”
He added: “Mining operations continue both at the main incline shaft and at the winzes that will go directly into the orebody. The exploration team are continuing to work at the exciting new discovery at Gingibil where visible gold was discovered in recent weeks.”
The loan contribution – primarily from major shareholders – has a term of two years and an interest rate of 15 % p.a. The Loan may be converted into shares on a quarterly basis or at the maturity date, subject to certain conditions being met.
If converted, the conversion of the Loan will take place by each lender subscribing for shares through off-setting the Loan amount (including accrued interest) against a conversion price of NOK 6.90 per Akobo Minerals share.
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The actual conversion of the Loan is subject to a resolution at the company’s shareholders’ meeting. If the company, for whatever reason, is not able to issue the required shares to the lenders, the Loan shall be repaid in full, together with accrued interest.
