Scandinavian gold exploration company Akobo Minerals has secured an $8.5-million gold loan facility from US-based Monetary Metals.
The net proceeds from the loan facility, secured through Akobo's wholly-owned subsidiary Abyssinia Resources Development, will ensure Akobo has the financial strength to accelerate the final phase of mine development at its Segele project, in Ethiopia.
Gold production at Segele is on track to start in early 2023.
“This financing agreement with Monetary Metals gives Akobo Minerals exactly what we were looking for – a loan facility that will take us through to completion of our mine and the start of gold production, while at the same time ensuring a minimal dilution of equity for our shareholders. We can now look forward to mining and production in the new year with renewed confidence.
“Furthermore, the deal with Monetary Metals shows a strong international endorsement of our gold exploration and mining project in Ethiopia. We have greatly enjoyed working with them through the process, which included taking them on a site visit to Segele to show them our developing mining operation,” comments Akobo CEO Jørgen Evjen.
“Jørgen and Akobo’s management team presented us with a professional approach to running the business. Couple that with a remarkable gold deposit at Segele, and you have a very compelling economic proposition,” adds Monetary CEO Keith Weiner.