Scandinavian gold exploration and mining company Akobo Minerals has secured a NKr6-million bridge loan.
As part of the ongoing efforts to secure new funding, the company said on February 9 that it had successfully addressed a short-term liquidity requirement and that the bridge financing of NKr6-million had been secured from existing shareholders.
The Akobo board and management contributed to this with NKr4-million of the funds, of which Esmar, a closely associated company of director Carl Eide contributed NKr3.5-million and Kanoka Invest, a closely associated company of CEO Jørgen Evjen, contributed NKr500 000.
The proposed loan matures in August 2025 and has an interest rate of 20% a year. The loan may be converted into shares at the next share issue 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 offsetting the loan amount, including accrued interest. The loan, including accrued interest, may be converted into shares at the earliest of the resolution of a private placement of shares, or at the maturity date.
Akobo said this financial measure provides the company with flexibility to navigate the current landscape and conclude a financial solution that involves all stakeholders in the company.
Akobo said it remained actively engaged in discussions with relevant stakeholders to explore various long-term financing options to address its overall liquidity requirements.