Beskrivning
| Land | Sverige |
|---|---|
| Lista | Euronext Growth Oslo |
| Sektor | Råvaror |
| Industri | Gruvdrift & metaller |
Oslo, Norway, 13 May 2025 - Akobo Minerals AB (publ) ("Akobo" or the "Company") (Euronext Growth Oslo: AKOBO), a Scandinavian-based Ethiopian gold producer, announces that it has agreed with Monetary Metals on revised terms for the Company's existing gold loan facility.
Monetary Metals initially provided funding in November 2022 to support development of the Segele project and has remained a committed partner throughout. A first amendment was completed in February 2024. Following continued operational progress and updated development plans, the parties have now signed a Memorandum of Understanding (MoU) outlining revised terms intended to provide Akobo with greater financial flexibility. This MoU is subject to closing conditions as listed below.
Key elements of the MoU
- Interest rate on the outstanding loan reduced to the original 22% per annum
- Payment-in-kind (PIK) provisions for a 90-day period with no cash interest payments
- Interest-free grace period of 180 days, with no interest accrued or paid
- First repayment scheduled to begin in early 2026
- Loan maturity extended to 30 June 2027
- Standstill agreement in place until 31 August 2025, during which no default or enforcement actions will be taken
Main closing conditions to be fulfilled by 31 August 2025
- Finalisation and approval of an updated mine plan and economic model
- Minimum new funding of USD 3.5 million, through equity, debt or other instruments, including convertible structures at Akobo's discretion
- Approval of the revised loan terms by Monetary Metals' bondholders (already obtained)
- Signing of a definitive Second Restructuring Agreement
Additional terms include the issuance of new warrants to Monetary Metals, increasing their entitlement from 2% to 3% of Akobo's fully diluted market capitalisation. Monetary Metals will also maintain a board observer seat until the loan is fully repaid.
This agreement is part of Akobo's broader strategy to secure a long-term financial foundation. It reflects the constructive partnership between the Company and its lenders, and a joint commitment to achieving a sustainable path forward that benefits all stakeholders.
Operationally, the processing plant is active, gold production has commenced, and geological data continues to support the presence of high-grade mineralisation. Sutton Global has been engaged to oversee the next phase of development, with a focus on enhancing underground access and production efficiency through the vertical shaft project.
CEO Jørgen Evjen commented: "We appreciate the continued support from Monetary Metals and their confidence in our long-term plans. With the right partners, a strong operational team, and the project fundamentals in place, we are focused on putting the final pieces together to unlock the full value of Segele."
DISCLOSURE REGULATION
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This information is considered to be inside information pursuant to the EU Market Abuse Regulation and was published by Jørgen Evjen, CEO, on the date and time provided herein.
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
About Akobo Minerals
Akobo Minerals is a Scandinavian-based gold producer, currently holding an exploration license covering 182 km2 and a mining license covering 16 km2 in the Gambela region and Dima Woreda, Ethiopia. With over 15 years of active operations on the ground, the company has established a strong foothold in Ethiopian mining industry.
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 The mineralized zone remains open at depth, supporting future resource estimates and extending the mine's 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 maintains strong relationships with local communities and government authorities, placing ESG principles at the core of its operations. The company's commitment to sound ethics, transparency, and stakeholder engagement is evident through its industry-leading extended shared value program.
Akobo Minerals 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 (OTC: AKOBF) is traded on the OTC Pink Market.
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/.