Akobo Minerals’ partnerships with Monetary Metals (MM) and Ethiopian Investment Holdings has provided the company with the financial flexibility it needs to complete the vertical shaft at the Segele gold mine and improving its operations in Ethiopia.

The Scandinavian-based gold producer has completed its financial restructuring by amending and restating in full the terms of the loan agreement with MM. The amended and restated terms are now formally in place with all conditions lifted.

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As part of its financial strengthening, Akobo has also carried out a USD 3 million private placement of 15 million new shares subscribed by Ethiopian Investment Holdings (EIH) at a subscription price of USD 0.20 per share.

The company has also notified all bondholders that the two remaining convertible bonds will be converted into shares, based on the terms of the private placement towards EIH. The process of conversion and issuance of corresponding shares will commence immediately.

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With the funding from EIH, the convertible bonds and the amended and restated MM loan, the company is well-positioned to advancing its operations.

Construction of the vertical shaft is progressing according to plan and is expected to be completed around year-end. Once operational, it is expected to materially enhance production and revenues.

“We are pleased to have completed the restructuring and to continue our strong partnerships with Monetary Metals and Ethiopian Investment Holdings,” said Jørgen Evjen, CEO of Akobo Minerals.

“Their support provides the financial flexibility needed to complete the vertical shaft and improve our operations in Ethiopia.”